Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

business analysis You run a school in Florida. Fixed monthly cost is $5,836.00 for rent and utilities, $6,355,00 is spent in salaries and $1,625.00 in

business analysis
image text in transcribed
You run a school in Florida. Fixed monthly cost is $5,836.00 for rent and utilities, $6,355,00 is spent in salaries and $1,625.00 in insurance. Also every student adds up to $104.00 per month in stationary, food etc. You charge $701.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,059.00, salaries to $6,571.00 and insurance to $2,407.00 per month. Variable cost per student will increase up to $185.00 per month. However you can charge $1,044,00 per student. At what point will you be indifferent between your current mode of operation and the new option? Answer format: Number: Round to: 0 decimal places. For a table manufacturing company, selling price for a table is $220.00 per Unit, Variable cost is $30.00 per Unit, rent is $4,601.00 per month and insurance is $245.00 per month. Company wants to expand its business and improve the table quality, it wants to increase the selling price for a table to $267. Octper Unit, Variable cost to $53,00 per Unit, bigger area will have rent $6,290.00 per month and insurance is $375.00 per month At what point will the compary be indifferent between the current mode of operation and the new option? 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

GAO Yellow Book Government Auditing Standar

Authors: Comptroller General United States Government

2011edition

1479245577, 978-1479245574

More Books

Students also viewed these Accounting questions