Sarah is not currently using the fitness loft, a special area of the gym that houses state-of-the-art cardio and strength training equipment. Based on a visit as a friend’s guest, Sarah has decided to enroll in the loft. She is deciding between buying a pass to the fitness loft (cost: $120 per semester) and buying a pass for each use (cost: $4 per visit). She wants to work out at least three times a week, which translates to 45 times for the semester. Towel rental at the loft is $0.50 per use. Sarah pays a facilities fee of $175 per semester with her tuition; this fee entitles her to “free” use of one locker.

Required:

a. Is the facilities fee of $175 relevant or controllable for Sarah’s decision?

b. Is the towel rental of $0.50 per visit controllable or relevant for this decision?

c. Is the per-use fee controllable or relevant for this decision?