Minnie Mouse Nursing Limited is considering opening a new facility in Toontown. The fees process and costs of the various services should be the same as her 6 other centers in Disney World. The only cost that should change is that rent will be $6,250 greater per month in the Toontown location than all the others. The existing centers have the following data per year:

Revenues (fees) $1,250,000

Variable costs $600,000

Fixed costs $420,000

Required:

ALL CALCULATIONS MUST BE SHOWN

1. Determine the fees required for the new location to break even.
2. Determine the fees required for the new location to make a $120,000 profit per year.