50.1K

Verified Solution

Link Copied!

OPTION 1: Determining Compensation Methods The Seasons Spa Using the scenario below, create a spreadsheet that calculates the following: 1. Spa therapist wages if s/he were compensated based on base hourly pay, commission on services, and fee-for-service. 2. Spa revenue based on the above ced compensation models. The information you'll need: The Seasons Spa has five full-time and two part- time massage therapists, five full-time and one part- time estheticians, and three full-time and five part- time nail technicians. The spa has 15 treatment rooms and six nail stations. On an average day, the spa books 40 massages, 55 facials and body treatments, and 75 manicures or pedicures. Massages take an average of 90 minutes of the therapist's time, facials and body treatments take an average of 60 minutes, and manicures and pedicures take an average of 30 minutes. The competitive hourly rate for massage therapists in the spa's area is $14 per hour; for estheticians $11 per hour, and $9 per hour for nail technicians. The commission only rate is 35%; while a blended commission rate would be a base pay at two-thirds the going rate plus 15% commission. Under a fee-for-service pay model, the average fees are $30 per $110 massage; $18 per $85 facial; and $9 per $30 manicure/pedicure (combined average). OPTION 1: Determining Compensation Methods The Seasons Spa Using the scenario below, create a spreadsheet that calculates the following: 1. Spa therapist wages if s/he were compensated based on base hourly pay, commission on services, and fee-for-service. 2. Spa revenue based on the above ced compensation models. The information you'll need: The Seasons Spa has five full-time and two part- time massage therapists, five full-time and one part- time estheticians, and three full-time and five part- time nail technicians. The spa has 15 treatment rooms and six nail stations. On an average day, the spa books 40 massages, 55 facials and body treatments, and 75 manicures or pedicures. Massages take an average of 90 minutes of the therapist's time, facials and body treatments take an average of 60 minutes, and manicures and pedicures take an average of 30 minutes. The competitive hourly rate for massage therapists in the spa's area is $14 per hour; for estheticians $11 per hour, and $9 per hour for nail technicians. The commission only rate is 35%; while a blended commission rate would be a base pay at two-thirds the going rate plus 15% commission. Under a fee-for-service pay model, the average fees are $30 per $110 massage; $18 per $85 facial; and $9 per $30 manicure/pedicure (combined average)

Answer & Explanation Solved by verified expert

See Answer