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At what point will you be indifferent

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Problem - You run a nail salon. Fixed monthly cost is $5,257.00 for rent and utilities, $6,277.00 is spent in salaries and $1,736.00 in insurance. Also every customer requires approximately $2.00 in supplies. You charge $98.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $11,925.00, salaries to $6,766.00 and insurance to $2,019.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $164.00 per service. At what point will you be indifferent between your current location and the new location?

Reference no: EM132862490

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