You run a school in Florida. Fixed monthly cost is $5,179.00 for rent and utilities, $6,308.00 is spent in salaries and $1,092.00 in insurance. Also every student adds up to $90.00 per month in stationary, food etc. You charge $604.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,880.00, salaries to $6,125.00 and insurance to $2,390.00 per month. Variable cost per student will increase up to $175.00 per month. However you can charge $1,026.00 per student. At what point will you be indifferent between your current mode of operation and the new option?