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Question 14 Take me to the text Not checked Marked out of 8.00 Zen Company wants to open a new spa in a nearby plaza.

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Question 14 Take me to the text Not checked Marked out of 8.00 Zen Company wants to open a new spa in a nearby plaza. Zen Company will be offering half-day spa treatments for $170 each. Variable costs (not including the leasing costs below) are $92 for every treatment. In terms of lease payments, the plaza has provided him three options: P Flag question i. Pay $35 per treatment given ii. $16,000 per month iii. $11,000 per month and $11 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 360 treatments are given and if 660 treatments are given. Lease Option Operating Profit Based on the Number of Treatments Given 360 units 660 units i. Pay $35 per treatment given $ ii. $ 16,000 per month $ $ iii. $11,000 per month and $11 per treatment given $ $ b) At a level of 660 massages, which option should be recommended? Option: c) Calculate the degree of operating leverage for the second lease option if Zen Company gives 660 treatments. Round your answer to 2 decimal places. Degree of Operating Leverage: Check

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