Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Attempts You run a school in Florida. Fixed monthly cost is $5,547.00 for rent and utilities, $6,403.00 is spent in salaries and $1,394.00 in insurance.

image text in transcribed
Attempts You run a school in Florida. Fixed monthly cost is $5,547.00 for rent and utilities, $6,403.00 is spent in salaries and $1,394.00 in insurance. Also every student adds up to $99.00 per month in stationary, food etc. You charge $696.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,004.00, salaries to $6,957.00 and insurance to $2,020.00 per month. Variable cost per student will increase up to $153.00 per month. However you can charge $1,136.00 per student. At what point will you be indifferent between your current mode of operation and the new option? Submit Answer format: Number: Round to: O decimal places. #15 una not sul Attempts Remai You run a school in Florida. Fixed monthly cost is $5,608.00 for rent and utilities, $5,594.00 is spent in salaries and $1,404.00 in insurance. Also every student adds up to $98.00 per month in stationary, food etc. You charge $623.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,703.00, salaries to $6,171.00 and insurance to $2,371.00 per month. Variable cost per student will increase up to $181.00 per month. However you can charge $1,091.00 per student. At what point will you be indifferent between your current mode of operation and the new option? Submit Answer format: Number: Round to: 0 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Venture Capital And The Finance Of Innovation

Authors: Andrew Metrick, Ayako Yasuda

3rd Edition

1119490111, 978-1119490111

More Books

Students also viewed these Finance questions