?Betis Limited is considering changing the way it is structured by asking its employed staff to?become freelance.? Employees are currently paid a fixed salary of $240,000 per annum, but?would instead be paid $200 per working day.? On a typical working day, staff can produce?40 units. Other fixed costs are $400,000 pa.??
The selling price of a unit is $60 and material costs are $20 per unit.?
What will be the effect of the change on the breakeven point of the business and the?level of operating risk??