Question: Marriott is considering adding a spa to its hotel in order to improve features. Operating the spa would require a fixed cost of $25,000 a
Marriott is considering adding a spa to its hotel in order to improve features. Operating the spa would require a fixed cost of $25,000 a year. Variable cost is estimated at $20 per customer. If Marriott provides the spa service at a price of $27, how many customers must use the spa service in order to break-even?
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