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

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jeff jeffy answered 1 year ago

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