#6 You run a school in Florida. Fixed monthly cost is $5,067.00 for rent and utilities, $5,521.00 is spent in salaries and $1,177.00 in insurance. Also every student adds up to $93.00 per month in stationary, food etc. You charge $675.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,418.00, salaries to $6,349.00 and insurance to $2,193.00 per month. Variable cost per student will increase up to $193.00 per month. However you can charge $1,064.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

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