A head hunter company has fixed costs of $57,000 per month and variable costs of $1000 per customer account. The company currently charges $1150 per month for each account and has 38000 accounts. It wants to raise the monthly fee to $1160.5 to cover enhanced features such as a new web interface and a newly acquired database, which increases the variable cost by 9 percent. What is the new breakeven point in the number of customers?

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter1: An Overview Of Strategic Marketing
Section1.2: Dollar Shave Club: The Company For Men
Problem 2C
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A head hunter company has fixed costs of $57,000 per month and variable
costs of $1000 per customer account. The company currently charges
$1150 per month for each account and has 38000 accounts. It wants to
raise the monthly fee to $1160.5 to cover enhanced features such as a new
web interface and a newly acquired database, which increases the variable
cost by 9 percent.
What is the new breakeven point in the number of customers?
Transcribed Image Text:A head hunter company has fixed costs of $57,000 per month and variable costs of $1000 per customer account. The company currently charges $1150 per month for each account and has 38000 accounts. It wants to raise the monthly fee to $1160.5 to cover enhanced features such as a new web interface and a newly acquired database, which increases the variable cost by 9 percent. What is the new breakeven point in the number of customers?
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