Calculate what the break-even would be for the case

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Reference no: EM132034988

Calculate what the break-even would be for the case given the following information:

Case: A Consulting Firm

The facts (in no particular order):

You have one manager on staff

You have one assistant on staff

Each consulting project earns you $40,000 in revenue

You pay sales people a 15% commission and all of your projects are sold by sales people

For each project you must pay an independent consultant $10,000 to perform the work for that project

Your manager (the one that works for you full time) costs you $130,000 per year

Your assistant (the one that works for you full time) costs you $50,000 per year

You pay $2,000 per month in rent

Assume no other expenses or revenue (e.g., no taxes)

How many consulting projects do you need to sell and complete each year to break even (round up to the nearest whole number, most people do not pay for a job partially done)?

Reference no: EM132034988

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