You run a school in Florida. Fixed monthly cost is $6,000.00 for rent and utilities, $6,105.00 is spent in salaries and $1,241.00 in insurance. Also every student adds up to $102.00 per month in stationary, food etc. You charge $625.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,084.00, salaries to $6,473.00 and insurance to $2,057.00 per month. Variable cost per student will increase up to $187.00 per month. However you can charge $1,030.00 per student. At what point will you be indifferent between your current mode of operation and the new option? Submit Answer format: Number: Round to: 0 decimal places.

You run a school in Florida. Fixed monthly cost is $6,000.00 for rent and utilities, $6,105.00 is spent in salaries and $1,241.00 in insurance. Also every student adds up to $102.00 per month in stationary, food etc. You charge $625.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,084.00, salaries to $6,473.00 and insurance to $2,057.00 per month. Variable cost per student will increase up to $187.00 per month. However you can charge $1,030.00 per student. At what point will you be indifferent between your current mode of operation and the new option? Submit Answer format: Number: Round to: 0 decimal places.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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