Question
Better-Life Massage Clinic (BM) provides various types of massage service at the price of $32. Currently, BM opens 30 days per month and serves 30
Better-Life Massage Clinic (BM) provides various types of massage service at the price of $32. Currently, BM opens 30 days per month and serves 30 customers a day. BM pays its own masseuses the wage of $18 per customer and bears monthly fixed expenses of $350 for equipment (supplies, maintenance, and replacement) and $3000 for floor space overhead (space rent, lighting, water, etc.). Mrs. Stephens, the owner of the clinic, wants you to create a worksheet in which she can see the clinics net monthly income. Furthermore, she wants you to consider the following problems so that she can have a clearer idea about BMs future direction:
- How sensitive is the clinics monthly bottom line figures (net income, total revenue, and total expenses) to the number of customers it serves (use the range in between 10 to 40 with the increment of 2)?
- What is the exact number of customers per day BM must maintain to keep its breakpoint?
- How sensitive is the clinics net income to the changes in both number of customers and floor space overhead? Perform two-variable data table (# of customers changing from 10 to 40 with the increment of 2 & space overhead changing from $2000 to $4000 with the increment of $200).
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