Question
17. You run a nail salon. Fixed monthly cost is $5,674.00 for rent and utilities, $6,248.00 is spent in salaries and $1,506.00 in insurance. Also
17. You run a nail salon. Fixed monthly cost is $5,674.00 for rent and utilities, $6,248.00 is spent in salaries and $1,506.00 in insurance. Also every customer requires approximately $4.00 in supplies. You charge $114.00 on average for each service.
You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,610.00, salaries to $6,327.00 and insurance to $2,438.00 per month. Cost of supplies will increase to $7.00 per service. However you can now charge $172.00 per service. At what point will you be indifferent between your current location and the new location?
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