Question
Your SPA manager just comes to you with this Great Idea to increase SPA revenue. Simply give a FREE massages for every each new customer.
Your SPA manager just comes to you with this Great Idea to increase SPA revenue. Simply give a FREE massages for every each new customer. With the all the new business, we will be making more money than we can count, the SPA manager boosts.
You ask, How many massages do we need to sale to break even? Calculate the number of massages the SPA needs to be paid for to break even for the free massages.
Labor cost per massage $38.73
Operating Cost 15%
Overhead Cost $336
Sales price of massage $75
Estimate # of comp massages 123
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
