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: i. Pay $35 per treatment given ii. $16,000 per month ii. $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 i. Pay $35 per treatment given . $16,000 per month $11,000 per month and $11 per treatment given Operating Profit Based on the Number of Treatments Given 360 units 660 units

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: i. Pay $35 per treatment given ii. $16,000 per month ii. $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 i. Pay $35 per treatment given . $16,000 per month $11,000 per month and $11 per treatment given Operating Profit Based on the Number of Treatments Given 360 units 660 units

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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