You run a school in Florida. Fixed monthly cost is $5,396.00 for rent and utilities, $6,006.00 is spent in salaries and $1,475.00 in insurance. Also every student adds up to $97.00 per month in stationary, food etc. You charge $699.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,585.00, salaries to $6,315.00 and insurance to $2,371.00 per month. Variable cost per student will increase up to $195.00 per month. However you can charge $1,199.00 per student. At what point will you be indifferent between your current mode of operation and the new option?