Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You run a school in Florida Fixed monthly cost is $5,744 00 for rent and utilities, S6, 183.00 is spent in salanes and $1,209.00 in

image text in transcribed
You run a school in Florida Fixed monthly cost is $5,744 00 for rent and utilities, S6, 183.00 is spent in salanes and $1,209.00 in insurance. Also every student adds up to $96.00 per month in stationary, food etc. You charge $668 00 per month from every student now You are considering moving the school to another neighborhood where the rent and utilities will increase to $10.282.00. salaries to $6,595 00 and insurance to $2,203.00 per month Vanable cost per student will increase up to $190 00 per month. However you can charge $1,066.00 per student At what point will you be indifferent between your current mode of operation and the new option? Submit Answer format: Number Round to O decimal places You run a school in Florida Fixed monthly cost is $5,659.00 for rent and utilities, $5,78200 is spent in salaries and $1,726 00 in insurance Also every student adds up to $102.00 per month in stationary, food etc you charge $623 00 per month from every student now You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,977.00, salaries to $6,215.00 and insurance to $2,431.00 per month Variable cost per student will increase up to $159.00 per month However you can charge $1.031.00 per student. At what point will you be indifferent between your current mode of operation and the new option? Submit Answer format: Number Round to O decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T Horngren

6th Edition

0131795082, 978-0131795082

More Books

Students also viewed these Accounting questions

Question

Why are stereotypes so resistant to change?

Answered: 1 week ago

Question

What is one of the skills required for independent learning?Explain

Answered: 1 week ago

Question

Appreciate the importance of developing potential managers

Answered: 1 week ago

Question

Know how to approach on-the-job training

Answered: 1 week ago