#15

You run a nail salon. Fixed monthly cost is $5,654.00 for rent and utilities, $5,513.00 is spent in salaries and $1,409.00 in insurance. Also every customer requires approximately $3.00 in supplies. You charge $61.00 on average for each service.

You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,440.00, salaries to $6,480.00 and insurance to $2,274.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $154.00 per service. At what point will you be indifferent between your current location and the new loaction?