You run a school in Florida. Fixed monthly cost is $5,998.00 for rent and utilities, $6,363.00 is spent in salaries and $1,412.00 in insurance. Also every student adds up to $104.00 per month in stationary, food etc. You charge $695.00 permonth from every student now. You are considering moving the school to another neighborhood where the rent andutilities will increase to $11,061.00, salaries to $6,801.00 and insurance to $2,112.00 per month. Variable cost perstudent will increase up to $190.00 per month. However you can charge $1,072.00 per student. At what point will yoube indifferent between your current mode of operation and the new option? Submit Answer format: Number: Round to:0 decimal places.

Fixed costs are costs that do not change with the level of output or production. They are incurred…

student will increase up to $190.00 per month. However you can charge $1,072.00 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:

student will increase up to $190.00 per month. However you can charge $1,072.00 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:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

You run a school in Florida. Fixed monthly cost is $5,998.00 for rent and utilities, $6,363.00 is spent in salaries and $
1,412.00 in insurance. Also every student adds up to $104.00 per month in stationary, food etc. You charge $695.00 per
month from every student now. You are considering moving the school to another neighborhood where the rent and
utilities will increase to $11,061.00, salaries to $6,801.00 and insurance to $2,112.00 per month. Variable cost per
student will increase up to $190.00 per month. However you can charge $1,072.00 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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Step 2: Determine at what point will you be indifferent between your current mode of operation and the new.

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