Better-Life Massage Clinic (BM) provides various types ofmassage service at the price of $32. Currently, BM opens 30 daysper month and serves 30 customers a day. BM pays its own masseusesthe wage of $18 per customer and bears monthly fixed expenses of$350 for equipment (supplies, maintenance, and replacement) and$3000 for floor space overhead (space rent, lighting, water, etc.).Mrs. Stephens, the owner of the clinic, wants you to create aworksheet in which she can see the clinic’s net monthly income.Furthermore, she wants you to consider the following problems sothat she can have a clearer idea about BM’s future direction:

1. Prepare a monthly income statement for BM. What is BM’s currentfinancial status (e.g., making a profit, a break-even, or a loss)?If it makes a loss, then make your recommendation on how manycustomers it must have to make a breakeven.

2. How much does the clinic have to charge (or at least the rangeof massage price) if it suffers from the economic downturn withonly 16 customers per day?

Answer rating: 100% (QA)

Given Massage price 32 per customer Days open per month 30 Customers served per day 30 Wage paid per customer to masseuses 18 Monthly fixed expenses f... View the full answer