Question: Harrison Hotels is considering adding a spa to its current facility in order to improve the list of amenities. Operating the spa would require a

Harrison Hotels is considering adding a spa to its current facility in order to improve the list of amenities. Operating the spa would require a fixed cost of $25,000 per year. Variable cost is estimated at $35 per customer. The hotel wants to break even if 12,000 customers use the spa facility.

(a) Construct a spreadsheet model, assuming that selling price is an input to be specified by the user.

(b) Use Goal Seek to find the selling price for which the hotel will break even.

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