Question

Continuing with the gym problem: Now consider instead charging a single membership fee for unlimited use, allowing members to visit as many times as they wish with ZERO additional per-visit charge. You realize that this will also reduce your cost, because you will no longer need to deal with processing payments for each visit. You calculate that removing the per-visit charge will reduce your variable cost per visit from $2 to $1.50.

Answer 1

Answer:

The costs will reduced significantly

Explanation:

By option for the unlimited option, the costs of processing the login information and the accounts will be limited. A price cost cut of $ 0.50 will go a long way to cover the company's overhead costs. In addition, the unlimited cover is going to attract more members who would want to join the gymn. Thus, the best option will ensure maximum profits to be attainable.