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Happiness Company wants to open a new spa in a nearby plaza. Happiness Company will be offering half - day spa treatments for $ 1
Happiness Company wants to open a new spa in a nearby plaza. Happiness Company will be offering halfday spa treatments for $ each. Variable costs not including the leasing costs below are $ for every treatment.
In terms of lease payments, the plaza has provided him three options:
i Pay $ per treatment given
ii $ per month
iii. $ per month and $ per treatment given
Do not enter dollar signs or commas in the input boxes.
Use the negative sign for negative values.
Round all answers to the nearest whole number.
a Calculate the monthly operating profit for each of the three options if treatments are given and if treatments are given.
Lease Option Operating Profit Based on the Number of Treatments Given
units units
i Pay $ per treatment given $Answer
$Answer
ii $ per month $Answer
$Answer
iii. $ per month and $ per treatment given $Answer
$Answer
b At a level of massages, which option should be recommended?
Option: Answer
c Calculate the degree of operating leverage for the second lease option if Happiness Company gives treatments.
Round your answer to decimal places.
Degree of Operating Leverage: Answer
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