Question
You run a nail salon. Fixed monthly cost is $5,651.00 for rent and utilities, $5,830.00 is spent in salaries and $1,311.00 in insurance. Also every
You run a nail salon. Fixed monthly cost is $5,651.00 for rent and utilities, $5,830.00 is spent in salaries and $1,311.00 in insurance. Also every customer requires approximately $4.00 in supplies. You charge $87.00 on average for each service.
You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $11,705.00, salaries to $6,556.00 and insurance to $2,335.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $150.00 per service. At what point will you be indifferent between your current location and the new location?
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