Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You run a school in Florida. Fixed monthly cost is $ 5 , 6 4 2 . 0 0 for rent and utilities, $ 5
You run a school in Florida. Fixed monthly cost is $ for rent and utilities, $ is spent in salaries and
$ in insurance. Also every student adds up to $ per month in stationary, food etc. You charge $
per month from every student now.
You are considering moving the school to another neighborhood where the rent and utilities will increase to $
salaries to $ and insurance to $ per month. Variable cost per student will increase up to $ per
month. However you can charge $ per student. At what point will you be indifferent between your current mode
of operation and the new option?
Answer format: Number: Round to: decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started