You run a bakery where fixed monthly cost is $5,478.00 for rent and utilities, $6,133.00 is spent in salaries and $1,647.00 in insurance. Also, every customer requires approximately $2.00 in supplies. You charge $106.00 on average for each service.

You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,461.00, salaries to $6,580.00 and insurance to $2,088.00 per month. Cost of supplies will increase to $7.00 per service. However, you can now charge $162.00 per service. At what point will you be indifferent between your current location and the new location?