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You run a school in Florida. Fixed monthly cost is $5,945.00 for rent and utilities, $5,866.00 is spent in salaries and $1,436.00 in insurance. Also

You run a school in Florida. Fixed monthly cost is $5,945.00 for rent and utilities, $5,866.00 is spent in salaries and $1,436.00 in insurance. Also every student adds up to $104.00 per month in stationary, food etc. You charge $665.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,754.00, salaries to $6,752.00 and insurance to $2,292.00 per month. Variable cost per student will increase up to $186.00 per month. However you can charge $1,163.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

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