Zen Company wants to open a new spa in a nearby plaza. Zen Company will...
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Zen Company wants to open a new spa in a nearby plaza. Zen Company will be offering halfday spa treatments for $ each. Variable costs not including the leasing costs below are $ for every treatment. In terms of lease payments, the plaza has provided him three options: i Pay $ per treatment given ii $ per month iii. $ per month and $ 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 treatments are given and if treatments are given. b At a level of massages, which option should be recommended? Option: c Calculate the degree of operating leverage for the second lease option if Zen Company gives treatments. Round your answer to decimal places. Degree of Operating Leverage:
Zen Company wants to open a new spa in a nearby plaza. Zen Company will be offering halfday spa treatments for $ each. Variable costs
not including the leasing costs below are $ for every treatment.
In terms of lease payments, the plaza has provided him three options:
i Pay $ per treatment given
ii $ per month
iii. $ per month and $ 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 treatments are given and if treatments are given.
b At a level of massages, which option should be recommended?
Option:
c Calculate the degree of operating leverage for the second lease option if Zen Company gives treatments.
Round your answer to decimal places.
Degree of Operating Leverage:
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