The Massage Place charges $58 for a 60-minute massage. The cost of providing a 60-minute massage...

The Massage Place charges $58 for a 60-minute massage. The cost of providing a 60-minute massage is $23. The marketing director has determined that the average client gets a massage once every three months, and she is analyzing the profitability of a membership plan where members receive a discount on massages. The annual membership fee would be $50 and would entitle the member to 1 60-minute massage each month for $47. What additional is the additional value generated by the membership plan per client if an average client books a massage every month under the plan? Assume a three-year time horizon.

Please show the work as I’m trying to learn the concept

Expert Solution

jeff jeffy answered 1 year ago

The Massage Place charges $76 for a 60-minute massage. The cost of providing a 60-minute massage...

The Massage Place charges $76 for a 60-minute massage. The cost of providing a 60-minute massage is $25. The marketing director has determined that the average client gets a massage once every three months, and she is analyzing the profitability of a membership plan where members receive a discount on massages. The annual membership fee would be $50 and would entitle the member to 1 60-minute massage each month for $41. What additional is the additional value generated by the...

18% of her clients schedule 30-minute sessions, 39% schedule 45-minute sessions, 32% schedule 60-minute sessions, and...

18% of her clients schedule 30-minute sessions, 39% schedule 45-minute sessions, 32% schedule 60-minute sessions, and 11% schedule 90-minute sessions. (a) If the random variable X represents the time a client schedules for his/her session, find the probability distribution of X. (b) Suppose that the massage therapist charges $50 per hour, and that she uses $12 in supplies per session. Find the expectation of her profit per session.

Population 1 Population 2 51 54 57 51 65 67 68 60 53 58 58 61...

Population 1 Population 2 51 54 57 51 65 67 68 60 53 58 58 61 75 66 72 79 Can it be concluded, from this data, that there is a significant difference between the two population means? Let d=(Population 1 entry)−(Population 2 entry). Use a significance level of α=0.1 for the test. Assume that both populations are normally distributed. Step 1 of 5: State the null and alternative hypotheses for the test. Step 2 of 5: Find the value...

Consider the data set below. 65 68 58 57 71 61 60 67 66 72 60...

Consider the data set below. 65 68 58 57 71 61 60 67 66 72 60 62 54 57 61 54 55 58 61 55 64 66 56 61 51 83 57 55 58 59 61 55 66 55 58 52 75 67 64 56 55 58 50 62 63 67 57 54 55 63 a. Find the mean, median and mode. b. Find the range, variance, and standard deviation. c. Find the lower quartile, upper quartile, and inter-quartile range...

The following data set is the ages of 15 random professors. 46 51 60 58 37...

The following data set is the ages of 15 random professors. 46 51 60 58 37 65 43 55 30 68 25 62 56 42 59 a) Find the mean b) Find the mode c) Give the five number summary d) Are they any outliers? If so, what are they?

United Snack Company sells 60-pound bags of peanuts to university dormitories for $58 a bag. The...

United Snack Company sells 60-pound bags of peanuts to university dormitories for $58 a bag. The fixed costs of this operation are $545,200, while the variable costs of peanuts are $0.34 per pound. a. What is the break-even point in bags? b. Calculate the profit or loss (EBIT) on 12,000 bags and on 25,000 bags. c. What is the degree of operating leverage at 20,000 bags and at 25,000 bags? (Round your answers to 2 decimal places.) d. If United...

60 cm diameter well is being pumped at a rate of 1360 litres/minute. measurements in a...

60 cm diameter well is being pumped at a rate of 1360 litres/minute. measurements in a nearby test well were made at the same time as follows. At a distance of 6 m from the well being pumped, the drawdown was 6 m, and at 15 m the drawdown was 1.5 m. The bottom of the well is 90 m below the ground water table. (a) Find out the coefficient of permeability. (b) If all the observed points were on...

Two point charges are fixed in place. The positive charge is +2q and the negative charge...

Two point charges are fixed in place. The positive charge is +2q and the negative charge is –q. On the line that passes through the charges, how many places are there at which the total potential is zero?

Place 4 charges at the corners of a square which is 2 meters by 2 meters...

Place 4 charges at the corners of a square which is 2 meters by 2 meters (4 large squares along each length). Place two +1 nC charges at adjacent corners and two -1 nC charges at the other two corners. Determine the direction of the electric field at the following three points: Point E halfway between two like charges. (-120 degrees, 50 V/m) Point F halfway between two opposite charges. (-90.5 degrees, 309 V/m) Point G at the center of...

You and a group of friends are planning to visit a theme park, which charges $60...

You and a group of friends are planning to visit a theme park, which charges $60 for admission, $80 for a two-day pass, and $90 for a three-day pass. Your friends are interested in spending a lot of time there, but they’re worried about paying a lot of money. You explain the concept of marginal cost, which helps them see that the additional day is a good value. 1. The average cost per day of a three-day pass is $ per person....

Question