00:01
This is a piece of information that we're given in a scenario where the honor of a business that deals with web design, the website design, internet website design, actually looks at charging their clients $500 per project.
00:20
It's $500 per project.
00:24
So let's see what that translates to.
00:28
So $500 per project is the price.
00:31
The business charges or the business person charges per project and then two hundred two thousand eight hundred dollars per month is the cost this is the salary that you would give a web designer now obviously in order to really get the break even remember the five hundred dollars should cover of the cost as well as the margin of the business.
01:02
So there isn't enough information here to be able to help us understand what the profit maximization point is.
01:10
So we just need to consider the information that is given.
01:13
So we just work on an assumption here.
01:16
Break -even is going to be when you're considering one employee who's earning $2 ,800, how many projects is that employee supposed to do? so you simply have it has $2 ,800 divided by not $500 this time because the $500 already includes in that the margin as well as the cost for doing the project.
01:52
So if we assume it's 50%, then obviously you want to find out how much, how many projects an employee has to do in order to break even...