A Headhunter Company Has Fixed Costs of $57,000 Per Month

question 5

Short Answer

A headhunter 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 38,000 accounts. It wants to raise the monthly fee to $1160.55 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 number of accounts?

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Definitions:

Contingent Remainder

A future interest in property that becomes possessory when a specified condition is met, and one or more life estates have ended.

First-born Son

A term traditionally referring to the eldest male child in a family, who might have unique legal rights or social status in various cultures.

Catholic Church

The largest Christian church, led by the Pope, with a global presence and significant influence in religious, cultural, and political spheres.

Implied Warranty

A guarantee or assurance made by law regarding the quality and reliability of a product sold, even if not explicitly stated by the seller.