Feel Good Massage Offers Customized Sports Massages

question 50

Essay

Feel Good Massage offers customized sports massages.Feel Good charges $75 for a one-hour massage session that includes a ten-minute session in a therapeutic spa.The spa is leased at a cost of $3,000 per year plus $10 per use.Feel Good pays the massage therapists $20 per session.
Required:
a.What is Feel Good's total annual cost of massages if 60 massages are sold? If 70 are sold? If 80 are sold?
b.What is the company's total cost per massage if 60 massages are sold? If 70 are sold? If 80 are sold?
c.Should Feel Good consider raising the price charged for the sports massage? Why?

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Definitions:

Productivity Levels

The efficiency with which inputs are converted into outputs, typically measured as the ratio of output to inputs in the production process.

Educational Costs

Expenses associated with acquiring education, including tuition, books, supplies, and living expenses.

Market Signaling Device

Methods or activities used by firms or individuals to convey information about the quality or features of a product or service to the market.

Worker Ability

The skills, talent, or capacity that an employee possesses, which can determine their effectiveness in performing job tasks.