Discussion Initial Response Due by Wednesday: You own Paradox Escape Room Ltd and have $3$ locations in the local area. One of the locations is exclusively horror$-$

themed escape rooms and the location barely breaks even. The revenue and costs for the horror$-$themed escape room are below. You are evaluating whether to

close the horror$-$themed location or change it to a "Million Dollar Listing Virtual Reality" escape room.

The "Million Dollar Listing" option forecasts the following changes to operation revenues and expenses:

revenues will increase by $13\%$

variable staffing and merchandise costs will increase by $6\%$

variable selling expenses will increase by $1\%$

fixed costs increase by $$11,000$

variable selling expenses remain unchanged

Part $1$: Prepare two differential analyses. Remember that each analysis will compare the current situation to the change. Show your work.

Analysis #$1$ will determine if the horror$-$themed locations should be continued or discontinued.

Analysis #$2$ will determine if the horror$-$themed location should be changed to a "Million Dollar Listing Virtual Reality" theme.

Part $2$: As the financial analyst, you believe there is a fourth option to make the escape room more profitable. Describe your plan to increase profitability.

Discussion Response Due by Saturday: Review another student's fourth option $($Part $2)$ and evaluate their profitability plan.