The current cost structure of your company is; the fixed costs of $425,000 per year; its variable costs are 30% of the revenues. If you hire a new manager at the annual salary of $65,000 (fixed costs), how much sales will you need to breakeven? (Do not put "$" or "," in your answer. If you answer is $1,000.00; then, just put 1000)
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Step 1: Identify the given data: fixed costs = 425000 per year; variable costs = 30% of revenues; additional manager salary (fixed) = 65000 per year. Show more…
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