You run a school in Florida. Fixed monthly cost is $5,685.00 for rent and utilities, $6,209.00 is spent in salaries and $1,524.00 in insurance. Also every student adds up to $95.00 per month in stationary, food etc. You charge $744.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,982.00, salaries to $6,991.00 and insurance to $2,154.00 per month. Variable cost per student will increase up to $185.00 per month. However you can charge $1,101.00 per student. At what point will you be indifferent between your current mode of operation and the new option?