Annual fixed cost = $875000
Annual Variable cost = $200 per member
The membership fees is $225 per month. So annual membership fees = $225 x 12 months = $2700.Therefore annual revenue = $2700 per member
Break even point = Fixed cost / (Revenue – Variable cost)
= $875000 / ($2700-$200)
= $875000 / 2500
= 350 members
So the club needs 350 members to break even
“Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!”
What Students Are Saying About Us
.......... Customer ID: 12*** | Rating: ⭐⭐⭐⭐⭐"Honestly, I was afraid to send my paper to you, but splendidwritings.com proved they are a trustworthy service. My essay was done in less than a day, and I received a brilliant piece. I didn’t even believe it was my essay at first 🙂 Great job, thank you!"
.......... Customer ID: 14***| Rating: ⭐⭐⭐⭐⭐
"The company has some nice prices and good content. I ordered a term paper here and got a very good one. I'll keep ordering from this website."