You run a nail salon. Fixed monthly cost is $5,570.00 for rent and utilities, $5,941.00 is...

You run a nail salon. Fixed monthly cost is $5,570.00 for rent and utilities, $5,941.00 is spent in salaries and $1,508.00 in insurance. Also every customer requires approximately $3.00 in supplies. You charge $106.00 on average for each service.

You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,463.00, salaries to $6,283.00 and insurance to $2,444.00 per month. Cost of supplies will increase to $8.00 per service. However you can now charge $141.00 per service. At what point will you be indifferent between your current location and the new loaction?

Expert Solution

orchestra answered 2 years ago

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