#14

You run a school in Florida. Fixed monthly cost is $5,795.00 for rent and utilities, $6,372.00 is spent in salaries and $1,027.00 in insurance. Also every student adds up to $92.00 per month in stationary, food etc. You charge $695.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,931.00, salaries to $6,028.00 and insurance to $2,082.00 per month. Variable cost per student will increase up to $170.00 per month. However you can charge $1,186.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

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#15

Expenses for a Pizza restaurant include raw material for pizza at $6.00 per slice, $102.00 as monthly rental and $42.00 monthly as insurance. Lost sale expense is considered to be $6.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month.

Today the restaurant prepared 200.00 pizza slices and sells them for $10.00/slice. There was a party at a nearby office so the demand for pizza went up to 230.00 slices. How much profit did the restaurant earn today?

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#16

Alexa owns a Coffee Shop. The following information is from her accountant:

Expenses:

Advertising $48.00

Coffee, cups, sweetener, flour, etc. $9.32 per cup of coffee and a muffin

Monthly rental $110.00

What will her break even point be if she sets the price for coffee and a muffin at $13.32.

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#17

You run a nail salon. Fixed monthly cost is $5,820.00 for rent and utilities, $5,705.00 is spent in salaries and $1,020.00 in insurance. Also every customer requires approximately $4.00 in supplies. You charge $115.00 on average for each service.

You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,049.00, salaries to $6,774.00 and insurance to $2,312.00 per month. Cost of supplies will increase to $8.00 per service. However you can now charge $159.00 per service. At what point will you be indifferent between your current location and the new location?

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#18

A Restaurant is open only for 25 days in a month.

Expenses for the restaurant include raw material for each sandwich at $6.00 per slice, $1,135.00 as monthly rental and $290.00 monthly as insurance. They consider the cost of lost sales as $6.00 per item. They are able to sell any leftover sandwiches for $3. They prepares 200.00 sandwiches and sells them at a rate of $14.00/sandwich. Today there was a party at nearby office so the demand for sandwiches rose to 228.00. How much profit did the restaurant earn today?

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#19

Expenses for a Pizza restaurant include raw material for pizza at $6.00 per slice, $116.00 as monthly rental and $40.00 monthly as insurance. Lost sale expense is considered to be $4.00 per unhappy customer. Leftover Pizza can be sold for $3. The restaurant is open 25 days in a month.

Today the restaurant prepared 200.00 pizza slices and sells them for $11.00/slice. There was a party at a nearby office so the demand for pizza went up to 211.00 slices. What is the daily fixed costs expense?

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Answer format: Currency: Round to: 0 decimal places.