1. Tom owns a Pizza Restaurant. Expenses for the restaurant include raw material for pizza at $6.43 per slice, $142.00 as monthly rental and $51.00 monthly as insurance. A restaurant sells pizza at a rate of $11.43/slice. How many slices should the restaurant sell in a month to break even?

2. You run a nail salon. Fixed monthly cost is $5,595.00 for rent and utilities, $5,643.00 is spent in salaries and $1,487.00 in insurance. Also every customer requires approximately $2.00 in supplies. You charge $75.00 on average for each service.

You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $11,373.00, salaries to $6,720.00 and insurance to $2,269.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $160.00 per service. At what point will you be indifferent between your current location and the new loaction?