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You run a school in Florida. Fixed monthly cost is $5,436.00 for rent and utilities, $6,320.00 is spent in salaries and $1,511.00 in insurance. Also

You run a school in Florida. Fixed monthly cost is $5,436.00 for rent and utilities, $6,320.00 is spent in salaries and $1,511.00 in insurance. Also every student adds up to $91.00 per month in stationary, food etc. You charge $625.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,498.00, salaries to $6,522.00 and insurance to $2,137.00 per month. Variable cost per student will increase up to $165.00 per month. However you can charge $1,189.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

A Restaurant is open only for 25 days in a month.

Expenses for the restaurant include raw material for each sandwich at $6.00 per slice, $1,235.00 as monthly rental and $406.00 monthly as insurance. They consider the cost of lost sales as $5.00 per item. They are able to sell any leftover sandwiches for $3. They prepares 200.00 sandwiches and sells them at a rate of $15.00/sandwich. Today there was a party at nearby office so the demand for sandwiches rose to 216.00. How much profit did the restaurant earn today?

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