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You run a school in Florida. Fixed monthly cost is $5,328.00 for rent and utilities, $5,775.00 is spent in salaries and $1,708.00 in insurance. Also

You run a school in Florida. Fixed monthly cost is $5,328.00 for rent and utilities, $5,775.00 is spent in salaries and $1,708.00 in insurance. Also every student adds up to $100.00 per month in stationary, food etc. You charge $629.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,626.00, salaries to $6,418.00 and insurance to $2,401.00 per month. Variable cost per student will increase up to $163.00 per month. However you can charge $1,079.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

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