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Break-even price of the spa service

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Reference no: EM132730027

A local hotel is considering adding a spa to its current facility in order to improve its list of amenities. Operating the spa would require a fixed cost of $25,000 a year. Variable cost is estimated at $20 per customer. The hotel wants to break even if 54670 customers use the spa facility. What should be the break-even price of the spa service? (Round to two decimal places, e.g., 5.12)

Reference no: EM132730027

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