Reference no: EM132346188

Pest Control Limited is currently serving 1400 customers per week at an average price of $ 80 per customer. The variable costs are constant at $ 26 and non incremental fixed costs are 40% of current revenue. Pest Control's management believes that more customers could be attracted by a price cut of 5%. BUt there is some hesitation on their part because of demand exceeded 1500 customers there would be additional equipment needed that would raise the capacity by 750 customers but also result in an increase of $ 1400/ week of fixed costs. As a consultant to Pest Control you are required to create break-even table for sales changes from 0 to 20% in steps of 5%.