a) Calculate the monthly operating profit for each of the three options if 260 treatments are given and if 610 treatment
Posted: Sun Jul 03, 2022 3:50 pm
a) Calculate the monthly operating profit for each of the three options if 260 treatments are given and if 610 treatments are given. Lease Option i. Pay $35 per treatment given ii. $18,000 per month iii. $16,000 per month and $15 per treatment given Operating Profit Based on the Number of Treatments Given 260 units 610 units $ 20280 Degree of Operating Leverage: $ 11380 $9480 b) At a level of 610 massages, which option should be recommended? Option: ii รท $ 47580 $50930 $ 43780 c) Calculate the degree of operating leverage for the second lease option if Happiness Company gives 610 treatments. Round your answer to 2 decimal places.