Q1:You run a school in Florida. Fixed monthly cost is $5,311.00 for rent and utilities, $5,780.00 is spent in salaries and $1,040.00 in insurance. Also every student adds up to $95.00 per month in stationary, food etc. You charge $601.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,589.00, salaries to $6,437.00 and insurance to $2,465.00 per month. Variable cost per student will increase up to $183.00 per month. However you can charge $1,142.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

Q2:For a table manufacturing company, selling price for a table is $18.00 per Unit, Variable cost is $8.00 per Unit, labor charge is $3.00 per Unit, rent is $776.00 per month and transportation is $1 per tables. If 476.00 tables are sold in a month how much revenue company earns for that month?