Question: #16 A You run a school in Florida. Fixed monthly cost is $5,017.00 for rent and utilities, $6,464.00 is spent in salaries and $1,104.00 in
#16 A You run a school in Florida. Fixed monthly cost is $5,017.00 for rent and utilities, $6,464.00 is spent in salaries and $1,104.00 in Insurance. Also every student adds up to $95.00 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 $10,139.00, salaries to $6,511.00 and Insurance to $2,401.00 per month. Variable cost per student will increase up to $157.00 per month. However you can charge $1,089.00 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
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