Kristen Larson just graduated at the top of her massage class from the Aveda Institute in Des Moines, IA. Her plan is to move to Sioux City, IA for at least 5 years so she can spend time with her elderly grandparents and gain experience before branching out into a top salon in a large city. Upon graduation, Kristen received a job offer from Belle Touche, an Aveda Salon and Spa in Sioux City, for $65,000 dollars (including salary and insurance). Kristen would have to work Tuesday through Saturday from 9am-6pm for 50 weeks out of the year. The salon would pay for all of Kristen's supplies and equith but she would need to put 10% of her tips each day into tipshare for the front desk and clean-up employees. Tips are estimated at $18,000 per year. Kristen also is considering using her $9,000 savings to be her own boss so she can work less and more exible hours. For $100 per week ($5,200 per year), she can rent a room at Salon Volume but she would have to provide her own supplies, equipment, and insurance. She plans to schedule massages for 25 hours per week at an average rate of $65 per hour and spend 5 hours per week on other business duties (scheduling, bookkeeping, cleaning, purchasing, etc.) for 50 weeks of the year. Tips average 20% of the cost of services and the cancellation rate is 10%. Kristen's estimated costs are detailed below. -Massage Table: $2,000 (one time expense) -Lotions, Oils, Linens, Candles, and Other Supplies: $180 per month -Remaining on her Parent's Health Insurance (she is only 20): $120 per month -Advertising: $70 per month -Lia.bility Insurance: $40 per month lfKristen takes the job at Belle Touche, she will be able to earn 3% interest, on the money in her savings account. If she decides to work for herself, she will have 10 more hours of leisure each week which she values at $25 per hour. Calculate Kristen's annual economic prot for each alternative using the template provided. (Please note, each cell may not have an entry for both options.) All relevant values are gathered below. Belle Touch Sal $65,000 Tips $18,000 % of Tips Needed to Put into Tipshare for the Front Desk and Clean-up Employees 10% Savings Amount $9,000 Interest on Savings Account 3% Salon Volume Charges for One Hour of Massage $65 Hours of Massage E week 25 Working Weeks in a year 50 Rental Exams E year $5,200 Cost of a Massage Table $2,000 Lotions, Oils, Linens, Candles, and Other Supplies EXESEE E month $180 Remaining on her Parent's Health Insurance EXESE E month $120 Advertising Exses a month $70 Liability Insurance EXESBS E month $40 Tips as a Percentage of the Cost of Services 20% Cancellation Rate 10% Value of Leisure E hour $25 Additional Leisure Hours E week 10 Number of months per year 12 Belle Touche Salon Volume Salary Tips $18,000 % of Tips Needed to Put into Tipshare for the Front Desk and Clean-up Employees 10% Savings Amount $9,000 Interest on Savings Account 3% Salon Volume Charges for One Hour of Massage $65 Hours of Massage per week 25 Working Weeks in a year 50 Rental Expenses per year $5,200 Cost of a Massage Table $2,000 Lotions, Oils, Linens, Candles, and Other Supplies Expenses per month $180 Remaining on her Parent's Health Insurance Expenses per month $120 Advertising Expenses per month $70 Liability Insurance Expenses per month $40 Tips as a Percentage of the Cost of Services 20% Cancellation Rate 10% Value of Leisure per hour $25 Additional Leisure Hours per week 10 Number of months per year 12 Belle Touche Salon Volume Salary/Total Revenue $65,000.00 $81,250.00 Kristen's Tips $16,200.00 $16,250.00 Interest Received Value of Leisure Time Total Economic Benefit One-Time Expenses Rental Expenses Total Monthly Expenses Cancellation Expenses Total Economic Cost Total Economic Profit Which option should she choose based on her economic profit? should be chosen based on the economic profit