You provide therapeutic massage services, focusing on stress reduction services that are not covered by insurance. Your

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You provide therapeutic massage services, focusing on stress reduction services that are not covered by insurance. Your monthly overhead is $2,000. You value your time at $20 per half hour (how long a therapeutic massage takes). Supplies per massage cost $4. You currently charge $75 per massage and have a volume of 100 clients per month. Your trade journal says that a 5 percent reduction in prices typically results in a 7.5 percent increase in volume. What would happen to your volume, revenues, and profits if you cut your price to $70? If you raised your price to $80?

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