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Betis limited is considering changing the way it structure by asking its employed staff to become freeelance. Employess are currently paid fixed salary of $ 24000000 per annum but would instead be paid $ 200 per working day. On a typical working day staff can produce 40 unit. Other fixed cost are $ 400000pa
The selling price of a unit is $ 60 and material cost are $ 20 per unitWhat will be the effect of the change on the break even point of the business and the level of operating risk?
Breakeven point reduce and operating risk goes down and i didnt get the point in current breakeven point they have mentioned fixed cost of $ 240000+ $ 400000 why and new breakeven point ignore the 240000 why sir?
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