Answer:
With 266 costumers it is indifferent where the nail salon is located.
Explanation:
Giving the following information:
Fixed monthly cost is $5,518.00 for rent and utilities
$6,014.00 is spent on salaries.
$1,613.00 in insurance.
Every customer requires approximately $4.00 in supplies.
You charge $120.00.
New location:
Fixed costs in rent and utilities= $11,401
Salaries= $6,716.00
Insurance to $2,203.00 per month.
The cost of supplies will increase to $7.00 per service.
Selling price= $150.00 per service.
Gross profit old location= Contribution margin*Q - fixed costs
Gross profit old location= (120-4)*Q - 13145
Gross profit new location=Contribution margin*Q - fixed costs
Gross profit new location= (150-7)*Q - 20320
116*Q-13145= 143*Q - 20320
7175=27*Q
Q=265.74074 = 266costumers
