Problem:
You run a nail salon. Fixed monthly cost is $5,361.00 for rent and utilities, $6,143.00 is spent in salaries and $1,630.00 in insurance. Also every customer requires approximately $5.00 in supplies. You charge $73.00 on average for each service.
You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $10,894.00, salaries to $6,535.00 and insurance to $2,482.00 per month. Cost of supplies will increase to $8.00 per service. However you can new charge $158.00 per service. At what point will you be indifferent between your current location and the new location?