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You run a school in Florida. Fixed monthly cost is $5,580.00 for rent and utilities, $6,058.00 is spent in salaries and $1,501.00 in insurance. Also every student adds up to $99.00 per month in stationary, food etc. You charge $643.00 per month from every student now.You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,950.00, salaries to $6,885.00 and insurance to $2,209.00 per month. Variable cost per student will increase up to $190.00 per month. However you can charge $1,149.00 per student.
Problem 1: How much do you currently charge per student?
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