Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You run a school in Florida. Fixed monthly cost is $5,254.00 for rent and utilities, $5,743,00 is spent in salarles and $1,089.00 in insurance. Also

image text in transcribed
You run a school in Florida. Fixed monthly cost is $5,254.00 for rent and utilities, $5,743,00 is spent in salarles and $1,089.00 in insurance. Also every student adds up to $102.00 per month in stationary, food etc. You charge $704,00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,946.00, salaries to $6,297.00 and insurance to $2,327.00 per month. Variable cost per student will increase up to $181.00 per month. However you can charge $1,068.00 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 with AI-Powered 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

Students also viewed these Accounting questions