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You run a nail salon. Fixed monthly cost is $5,165.00 for rent and utilities, $6,017.00 is spent in salaries and $1,787.00 in insurance. Also every
You run a nail salon. Fixed monthly cost is $5,165.00 for rent and utilities, $6,017.00
is spent in salaries and $1,787.00 in insurance. Also every customer requires
approximately $4.00 in supplies. You charge $97.00 on average for each service.
You are considering moving the salon to an upscale neighborhood where the rent
and utilities will increase to $10,130.00, salaries to $6,924.00 and insurance to
$2,383.00 per month. Cost of supplies will increase to $7.00 per service. However
you can now charge $148.00 per service. At what point will you be indifferent
between your current location and the new loaction?
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