Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You run a school in Florida. Fixed monthly cost is $5,800.00 for rent and utilities, $6,222.00 is spent in salaries and $1,535.00 in insurance. Also

You run a school in Florida. Fixed monthly cost is $5,800.00 for rent and utilities, $6,222.00 is spent in salaries and $1,535.00 in insurance. Also every student adds up to $105.00 per month in stationary, food etc. You charge $750.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,243.00, salaries to $6,634.00 and insurance to $2,051.00 per month. Variable cost per student will increase up to $178.00 per month. However you can charge $1,196.00 per student. At what point will you be indifferent between your current mode of operation and the new option

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

Step: 3

blur-text-image

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

Financial Management For Nurse Managers

Authors: J. Michael Leger

5th Edition

1284230937, 9781284230932

More Books

Students also viewed these Finance questions