What happens to the breakeven point when Sports Illustrated lays off all six staff photographers and uses freelancers instead?
Questions
- What type of cost would staff photographers be for Sports Illustrated (fixed, variable, or mixed)?
- What type of cost would the freelance photographers be for Sports Illustrated?
- What is likely to happen to the breakeven point for Sports Illustrated due to the switch to using freelance photographers?
- What are some disadvantages to Sports Illustrated’s decision to outsource its photography?