#14You run a school in Florida. Fixed monthly cost is $5,160.00 for rent and utilities, $5,663.00 is spent in salaries and$1,636.00 in insurance. Also every student adds up to $91.00 per month in stationary, food etc. You charge $685.00 permonth from every student now.You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,903.00,salaries to $6,123.00 and insurance to $2,312.00 per month. Variable cost per student will increase up to $152.00 permonth. However you can charge $1,031.00 per student. At what point will you be indifferent between your current modeof operation and the new option?SubmitAnswer format: Number: Round to: 0 decimal places.

To determine the point of indifference between the current and new operational scenarios for the…

Answered: #14 You run a school in Florida. Fixed…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4.5IP

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