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A Headhunter Company Has Fixed Costs of $57,000 Per Month

Question 7

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A headhunter company has fixed costs of $57,000 per month and variable costs of $1000 per customer account. The company currently charges $1150 per month for each account and has 38,000 accounts. It wants to raise the monthly fee to $1160.55 to cover enhanced features such as a new web interface and a newly acquired database, which increases the variable cost by 9 percent. What is the new breakeven point in number of accounts?

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