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#17 You run a nail salon. Fixed monthly cost is $5,965.00 for rent and utilities, $6,402.00 is spent in salaries and $1,521.00 in insurance. Also every customer requires approximately $5.00 in supplies. You charge $119.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,452.00, salaries to $6,391.00 and insurance to $2,193.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $142.00 per service. At what point will you be indifferent between your current location and the new location? Submit Answer format: Number: Round to: 2 decimal places. Show Hint

#17 You run a nail salon. Fixed monthly cost is $5,965.00 for rent and utilities, $6,402.00 is spent in salaries and $1,521.00 in insurance. Also every customer requires approximately $5.00 in supplies. You charge $119.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,452.00, salaries to $6,391.00 and insurance to $2,193.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $142.00 per service. At what point will you be indifferent between your current location and the new location? Submit Answer format: Number: Round to: 2 decimal places. Show Hint

Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter5: Buying The Necessities
Section5.2: Cloting Choices
Problem 5R
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#17 You run a nail salon. Fixed monthly cost is $5,965.00 for rent and utilities, $6,402.00 is spent in salaries and $1,521.00 in insurance. Also every customer requires approximately $5.00 in supplies. You charge $119.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,452.00, salaries to $6,391.00 and insurance to $2,193.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $142.00 per service. At what point will you be indifferent between your current location and the new location? Submit Answer format: Number: Round to: 2 decimal places. Show Hint
Transcribed Image Text:#17 You run a nail salon. Fixed monthly cost is $5,965.00 for rent and utilities, $6,402.00 is spent in salaries and $1,521.00 in insurance. Also every customer requires approximately $5.00 in supplies. You charge $119.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,452.00, salaries to $6,391.00 and insurance to $2,193.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $142.00 per service. At what point will you be indifferent between your current location and the new location? Submit Answer format: Number: Round to: 2 decimal places. Show Hint
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