You run a school in Florida. Fixed monthly cost is $5,290.00 for rent and utilities, $6,345.00...

You run a school in Florida. Fixed monthly cost is $5,290.00 for rent and utilities, $6,345.00 is spent in salaries and $1,249.00 in insurance. Also every student adds up to $95.00 per month in stationary, food etc. You charge $666.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,038.00, salaries to $6,096.00 and insurance to $2,264.00 per month. Variable cost per student will increase up to $163.00 per month. However you can charge $1,172.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

Expert Solution

jeff jeffy answered 2 years ago

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