Zen Company wants to open a new spa in a nearby plaza. Zen Company will be offering half-day spa treatments for $110 each. Variable costs (not including the leasing costs below) are $75 for every treatment.

In terms of lease payments, the plaza has provided him three options: i. Pay $35 per treatment given ii. $21,000 per month iii. $17,000 per month and $13 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 280 treatments are given and if 740 treatments are given.

Lease Option	Operating Profit Based on the Number of Treatments Given
	280 units	740 units
i. Pay $35 per treatment given	$Answer	$Answer
ii. $21,000 per month	$Answer	$Answer
iii. $17,000 per month and $13 per treatment given	$Answer	$Answer

b) At a level of 740 massages, which option should be recommended? Option: Answer

c) Calculate the degree of operating leverage for the second lease option if Zen Company gives 740 treatments. Round your answer to 2 decimal places. Degree of Operating Leverage: Answer