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Zen Company wants to open a new spa in a nearby plaza. Zen Company will...

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Accounting

Zen Company wants to open a new spa in a nearby plaza. Zen Company will be offering half-day spa treatments for $140 each. Variable costs
(not including the leasing costs below) are $56 for every treatment.
In terms of lease payments, the plaza has provided him three options:
i. Pay $37 per treatment given
ii. $17,000 per month
iii. $13,000 per month and $5 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 300 treatments are given and if 620 treatments are given.
b) At a level of 620 massages, which option should be recommended?
Option:
c) Calculate the degree of operating leverage for the second lease option if Zen Company gives 620 treatments.
Round your answer to 2 decimal places.
Degree of Operating Leverage:
image

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