You run a school in Florida, Fixed monthly cost is $6,000.00 for rent and utilities, $6,027.00 is spent in salaries and $1,335,00 in insurance. Also every student adds up to 593,00 per month in stationary, food etc. You charge $701.00 per month from every student now, You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,548.00, salaries to $6,169.00 and insurance to $2,286.00 per month. Variable cost per student will increase up to $175.00 per month. However you can charge 51.147.00 per student. At what point will you be indifferent between your current mode of operation and the new option