Question

You run a school in Florida. Fixed monthly cost is $5,981.00 for rent and utilities, $5,708.00 is spent in salaries and $1,070.00 in insurance. Also every student adds up to $99.00 per month in stationary, food etc. You charge $639.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,921.00, salaries to $6,112.00 and insurance to $2,354.00 per month. Variable cost per student will increase up to $161.00 per month. However you can charge $1,157.00 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.

Answer 1

and $ 99.00 Ane Given Information is , * For florida, fixed monthly cost is $5981.00 foot olent and utilities. $5708.00 pas spent in Salactie@ $1070.00 in Insurance Alego, Every student addę up to month per in stationary food etc. you change $639.00 per month from ereoty Student now. bet t' be the number of students. Pozofit. 639x - ( 5981+5708+1070+998) 540x - 12759 * For other neighbourhood fixed monthly cost is $ 11921.00 for rent and utilites >

in $ 6112.00 is spent in salarica and $2354.00 Insurance $ 16,000 per month in stationary food etc. per student. Student charged = $ 1157 Let 'x' be the number of students Popofit 1157 X-C11921 + 6112+2354 +1614) 9962-20387 for borealeven point, 996x - 20,887 = 540 -1759 9968-5402 = 20387-72759 456X = 7628 7628 456 .. x = 16.73] Capproximately 17) is the number of studenta at which both options will be not different in profit.,
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