Harrison Hotels is considering adding a spa to its current facility in order to improve its list

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

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Operations Management

ISBN: 978-0470325049

4th edition

Authors: R. Dan Reid, Nada R. Sanders

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