Q1:You run a nail salon. Fixed monthly cost is $5,330.00 for rent and utilities, $6,122.00 is spent in salaries and $1,581.00 in insurance. Also every customer requires approximately $4.00 in supplies. You charge $76.00 on average for each service.

You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,721.00, salaries to $7,000.00 and insurance to $2,322.00 per month. Cost of supplies will increase to $8.00 per service. However you can now charge $173.00 per service. At what point will you be indifferent between your current location and the new loaction?

Q2:A vendor prepares 100.00 hotdogs every day and sells at $19.00 /piece. For each hot dog, he spends $12.00 in the raw material. Additionally he spends $1.54 for packing each hotdog and monthly $44.00, $18.00, $10.00 as food truck rent, electricity and other expenses respectively. Lost sales are charged at $3.00 per lost sale. Leftover hotdogs can be sold for $3.

On a particular day in June 102.00 people came wanting to buy a hotdog. Determine the vendors profit for that day? Assume there are 30 days in the month.