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At what point will you be indifferent

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Reference no: EM133140107

Question - You run a school in Florida. Fixed monthly cost is $5,925.00 for rent and utilities, $5,578.00 is spent in salaries and $1,474.00 in insurance. Also every student adds up to $102.00 per month in stationary, food etc. You charge $606.00 per month from every student now.

You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,730.00, salaries to $6,818.00 and insurance to $2,409.00 per month. Variable cost per student will increase up to $164.00 per month. However you can charge $1,178.00 per student. At what point will you be indifferent between your current mode of operation and the new option?

Reference no: EM133140107

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