An engineering consulting firm measures its output in a standard service hour unit, which
is a function of the personnel grade levels in the professional staff. The variable cost is
$62 per standard service hour. The charge-out rate (i.e., selling price) is $85.56 per hour.
The maximum output of the firm is 160,000 hours per year, and its fixed cost is
$2,024,000 per year. What is the breakeven point in standard service hours and in
percentage of total capacity?
is a function of the personnel grade levels in the professional staff. The variable cost is
$62 per standard service hour. The charge-out rate (i.e., selling price) is $85.56 per hour.
The maximum output of the firm is 160,000 hours per year, and its fixed cost is
$2,024,000 per year. What is the breakeven point in standard service hours and in
percentage of total capacity?
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