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

Harrison Hotels is considering adding a spa to its current facility 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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