Question
You run a nail salon. Fixed monthly cost is $5,488.00 for rent and utilities, $6,500.00 is spent in salaries and $1,197.00 in insurance. Also every
You run a nail salon. Fixed monthly cost is $5,488.00 for rent and utilities, $6,500.00 is spent in salaries and $1,197.00 in insurance. Also every customer requires approximately $5.00 in supplies. You charge $123.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,997.00, salaries to $6,703.00 and insurance to $2,491.00 per month. Cost of supplies will increase to $7.00 per service. However you can now charge $161.00 per service. At what point will you be indifferent between your current location and the new location?
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