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For a manufacturing company, selling price for an item is $597.00 per Unit, Variable cost is $217.00 per Unit, rent is $7,675.00 per month and
For a manufacturing company, selling price for an item is $597.00 per Unit, Variable cost is $217.00 per Unit, rent is $7,675.00 per month and insurance is $3000 per month. What is the contribution margin? Answer format: Currency: Round to: 0 decimal places. You run a school in Florida. Fixed monthly cost is $5,136.00 for rent and utilities, $6,392.00 is spent in salaries and $1,276.00 in insurance. Also every student adds up to $104.00 per month in stationary, food etc. You charge $628.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,085.00, salaries to $6,901.00 and insurance to $2,278.00 per month. Variable cost per student will increase up to $190.00 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? Answer format: Number: Round to: 0 decimal places
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