Answered step by step
Verified Expert Solution
Link Copied!

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 $5,642.00 for rent and utilities, $5,926.00 is spent in salaries and
$1,130.00 in insurance. Also every student adds up to $104.00 per month in stationary, food etc. You charge $722.00
per month from every student now.
You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,980.00,
salaries to $6,928.00 and insurance to $2,338.00 per month. Variable cost per student will increase up to $188.00 per
month. However you can charge $1,013.00 per student. At what point will you be indifferent between your current mode
of operation and the new option?
Answer format: Number: Round to: 0 decimal places.
image text in transcribed

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

Clinical Audit In Primary Care Demonstrating Quality And Outcomes

Authors: Ruth Chambers, Gill Wakley

1st Edition

1857757092, 978-1857757095

More Books

Students also viewed these Accounting questions

Question

What is a separable differential equation? How do you solve it?

Answered: 1 week ago