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:
- Mrs. Stephens wants to move the store as an attempt to save in space overhead. According to the market study, if BM moves to a place with a cheaper space overhead, then it would lose 5 customers in every $200 saved in space overhead due to the bad location. Do you believe that she can do it while keeping BM not making a loss in net income? Support your answer.
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