Welk's Weekend Spa charges $75 for a two-hour all-natural facial treatment.It pays a $500 annual charge plus $10 per hour for a facial massage machine used during the treatment.
Required:
a.What is Welk's total annual cost for the facial machine if 30 facials are sold? If 40 are sold? If 50 are sold?
b.What is the company's cost per facial for the machine if 30 facials are sold? If 40 are sold? If 50 are sold?
c.Why does the machine's cost per facial differ at the three levels of activity?

Question

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The Answer of Welk's Weekend Spa charges $75 for a two-hour all-natural facial treatment.It pays a $500 annual charge plus $10 per hour for a facial massage machine used during the treatment.
Required:
a.What is Welk's total annual cost for the facial machine if 30 facials are sold? If 40 are sold? If 50 are sold?
b.What is the company's cost per facial for the machine if 30 facials are sold? If 40 are sold? If 50 are sold?
c.Why does the machine's cost per facial differ at the three levels of activity?

Welk's Weekend Spa Charges $75 for a Two-Hour All-Natural Facial