Question
You run a school in Florida. Fixed monthly cost is $5,124.00 for rent and utilities, $6,107.00 is spent in salaries and $1,270.00 in insurance. Also
You run a school in Florida. Fixed monthly cost is $5,124.00 for rent and utilities, $6,107.00 is spent in salaries and $1,270.00 in insurance. Also every student adds up to $94.00 per month in stationary, food etc. You charge $667.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,135.00, salaries to $6,062.00 and insurance to $2,441.00 per month. Variable cost per student will increase up to $151.00 per month. However you can charge $1,154.00 per student. At what point will you be indifferent between your current mode of operation and the new option?
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