Because it is a service-intensive firm, Spago's Spa should expect labor costs to be among the smallest expenditures the company makes.

Name: Because it is a service-intensive firm, Spago's Spa should expect labor costs to be among the smallest expenditures the company makes.
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Labor costs are likely to be one of the largest expenditures for a service-intensive firm like Spago's Spa as the employees are the ones delivering the services to customers.

Because It Is a Service-Intensive Firm, Spago's Spa Should Expect