Question

Victor plans to set up an online business selling software applications that he develops and supports. He believes that a price of $130 for his product including the technical support would be competitive. His monthly fixed expenses amount to $850. Victor would hire some college students to provide the technical support of the application paying them for 3 hours at $15 per hour for each client. a) How many clients does Victor need to acquire to break even?

Answer 1

Answer:

130 –850

=720

= 720 ×3

=2160 – 15

=2145

Answer 2

Answer:

$980/45= 21 for the victory