Ana owns a consulting business that helps software companies market their services to school districts. She earns an average of $4635.7 for every contract one of her client companies signs with her help. In order to be able to run her business, she needs to cover $7,000/month (rent, licenses, etc.). The average costs associated with each contract are $1676.6. How many contracts must she facilitate each month in order to break even? a.

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Ana owns a consulting business that helps software companies market their services to school districts. She earns an average of $4635.7 for every contract one of her client companies signs with her help. In order to be able to run her business, she needs to cover $7,000/month (rent, licenses, etc.). The average costs associated with each contract are $1676.6. How many contracts must she facilitate each month in order to break even?
a.
2.37
b.
1.51
c.
-2.37
d.
-1675.09
e.
10966.14
f.
None of the other options.
Expert Solution
Step 1

Given:

fixed cost 7000
SP 4635.7
variable cost 1676.6
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