Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Snap fitness franchise owner salary

23/11/2021 Client: muhammad11 Deadline: 2 Day

I have already completed Section1, 2 and I need help with Section 3, 4

Section 1: Suppose that Snap Fitness estimates that each location incurs $5,000 per month in general fixed operating expenses and $1,000 to lease equipment. Mixed costs are equal to $500 per/month (fixed) plus $1 per membership sale (variable). Total variable costs were not provided. A recent newspaper article describing no-frills fitness centers indicated that a Snap Fitness site might require only 320 members to break even. Members pay on a monthly basis. Using the information provided above, and your knowledge of CVP analysis, estimate the amount of variable costs. (When performing your analysis, assume that fixed costs include estimated monthly operating expenses, equipment lease and the fixed part of mixed costs.)

Section 2: Using the information from part 1, section 1, what would monthly sales in members and dollars have to be to achieve a target net income of $15,000 for the month?

Section 3: Provide several examples of variable costs and fixed costs for a fitness center. Discuss how a fitness center's cost structure, relevant range, margin of safety, cost behaviors, and CVP apply to the case study. How do you plan to use this in order to manage the business and plan for profitability? What type of internal accounting reports would you like to review in order to help you make informed decisions?

Section 4: Go to a competitor's internet site (Curves, Snap Fitness, or Anytime Fitness ) and find information about purchasing their franchise. Summarize the pertinent information required to make an informed investment decision. Which franchise do you believe is a better business opportunity? Explain your answer.

My Answer

Snap Fitness is a company that offers franchise opportunities that capitalize on the needs of consumers to provide an equipped and convenient place to exercise while saving them money and time by offering the option to add desired or remove undesired services. Within this paper, the prospect of operating and purchasing Snap Fitness will be considered by evaluating contribution margin income statements. Break-even analyses and cost-volume-profit (CVP) and the variable costs affiliated with a fitness center’s operation will be evaluated. Lastly, this paper will determine if the venture to open a Snap Fitness would be profitable and what steps should be taken to open a Snap Fitness franchise.

Section 1: Suppose that Snap Fitness estimates that each location incurs $5,000 per month in general fixed operating expenses and $1,000 to lease equipment. Mixed costs are equal to $500 per/month (fixed) plus $1 per membership sale (variable). Total variable costs were not provided. A recent newspaper article describing no-frills fitness centers indicated that a Snap Fitness site might require only 320 members to break even. Members pay on a monthly basis. Using the information provided above, and your knowledge of CVP analysis, estimate the amount of variable costs. (When performing your analysis, assume that fixed costs include estimated monthly operating expenses, equipment lease and the fixed part of mixed costs.)

[Cost volume profit analysis (CVP analysis) is one of the most powerful tools that managers have at their command. It helps them understand the interrelationships between cost, volume, and profit in an organization by focusing on interactions among the following five elements: (1) Prices of products (2) Volume or level of activity (3) Per unit variable cost (4) Total fixed cost (5) Mix of product sold.] (Accounting Management, 2012; Accounting Management, 2012)

Snap Fitness estimates that each location incurs $5,000 per month In fixed operating expenses plus $1,000 to lease equipment, $500 per month fixed and $1 per membership (variable)

Fixed cost = 5000+1000+500 = $6500

Using the equation

Sales = variable cost + fixed cost

Breakeven occurs at 320 membership

320*27 = variable cost + 6500

Variable cost = 8640-6500 = 2140

Variable cost per member = 2140/320 = $6.69 (this includes $1 per membership sale)

The variable costs that Snap Fitness faces can be controlled by monitoring the variable

expenses that Snap incurs each month. If Snap’s operating, expenses consist of a building lease,

electricity, water, and employees to run the operation. You can lower this cost by either lowering

the rent on the building, find more cost efficient ways to provide electricity to power the

equipment, or lowering the amount of employees you have on staff. You could also lower the

variable costs for the company by finding a cheaper vendor to lease your equipment. [Because

cost-volume-profit (CVP) analysis helps, managers understand the relationship among cost,

volume and profit it is a vital tool in many business decisions. These decisions include, for

example what products to manufacture or sell, what pricing policy to follow, what marketing

strategy to employ, and what type of productive facilities to acquire.] (Accounting Management,

2012) By using CVP analysis Snap Fitness will be able to set their price for membership,

determine the amount of employees they can afford to employ, and determine their breakeven

membership level for the month and year.

Section 2: Using the information from part 1, section 1, what would monthly sales in members and dollars have to be to achieve a target net income of $15,000 for the month?

For a profit of $15,000

Revenue – cost = profit

Revenue = 27x

Cost = 6.69x+6500

27x-6.69x-6500 = 15000

20.31x = 21500

X = 1058.59 or 1059 members

If $15,000 is the amount the franchise aims to meet as its monthly net income target, there would need to be a membership count of 1059 at $27 per membership. This would add up to a total income amount of $28,593. With the variable totals of $7084 (6.69 per unit and fixed costs of $6500, the desired net income of $15,009 is reached.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Calculation Guru
Top Class Engineers
Instant Assignment Writer
Quality Homework Helper
University Coursework Help
Innovative Writer
Writer Writer Name Offer Chat
Calculation Guru

ONLINE

Calculation Guru

I can assist you in plagiarism free writing as I have already done several related projects of writing. I have a master qualification with 5 years’ experience in; Essay Writing, Case Study Writing, Report Writing.

$38 Chat With Writer
Top Class Engineers

ONLINE

Top Class Engineers

As an experienced writer, I have extensive experience in business writing, report writing, business profile writing, writing business reports and business plans for my clients.

$15 Chat With Writer
Instant Assignment Writer

ONLINE

Instant Assignment Writer

As per my knowledge I can assist you in writing a perfect Planning, Marketing Research, Business Pitches, Business Proposals, Business Feasibility Reports and Content within your given deadline and budget.

$18 Chat With Writer
Quality Homework Helper

ONLINE

Quality Homework Helper

I will provide you with the well organized and well research papers from different primary and secondary sources will write the content that will support your points.

$47 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

I will be delighted to work on your project. As an experienced writer, I can provide you top quality, well researched, concise and error-free work within your provided deadline at very reasonable prices.

$22 Chat With Writer
Innovative Writer

ONLINE

Innovative Writer

As an experienced writer, I have extensive experience in business writing, report writing, business profile writing, writing business reports and business plans for my clients.

$28 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Playstation 4 error ws 37269 7 - Determinants of interest rate for individual securities - Harlem children's zone case study analysis - How does specialization make us more efficient - Pros and cons of cobit - Examples of logical fallacies in advertising - Construction Management & scheduling FINAL PROJECT - Business case versus business plan - What is the name of h3o - One foul swoop clothing - Oracle 12c sql chapter 1 hands on assignments answers - My sisters keeper - Advantages and disadvantages of category captain - Start Seeing Diversity Blog: Creating Art - Reynolds gym bexley prices - Pictures of the house on mango street - There will come soft rains vocabulary practice answer key - Article writing - Assignment self awareness and conflict resolution - Sonnet 130 paraphrase line by line - CJUS 420 DB FORUM 4 THREAD due 9/16/2020 - Inverse function theorem khan academy - Www esciencelabs com user register - Name of the goldfish crackers mascot - 3 resources - Bus 475 week 3 individual assignment - How long to fall 1km - What are the importance of middlemen to marketing - How to cite fasb codification - Jonas and kovner 11th edition - Well researched paper needed - Discussion - Independent variable in zimbardo's experiment - Train timetable blue mountains - Business and Society.03 - Manpower consultancy company profile ppt - Nephroureteral stent icd 10 pcs - How to calculate intrinsic viscosity - Themes of the great depression - Powerpoint - Discussion - Hpi soap note - Psych - What is the domain of a rational expression - Simplifying expressions with grouping symbols - Reserch paper Infomartion technology - Where the domino fell sparknotes - What does electronegativity have to do with polarity - Verbatim of a counselling session - Corporate finance ross ppt - University of southampton bursary - Identify the factors of production - Deloitte tracking and trading exam answers - Characteristics of baroque music - Malaysia energy statistics handbook 2017 - Nurse standards of practice - Statistics Discussion - Reading Statistical Report - Steve caples a real estate appraiser - Keynesian range of the aggregate supply curve - $1m usd to aud - How to write a persuasive conclusion - Tae40116 assessment answers - Dna replication illustration worksheet - Liberty university letter of recommendation - Pros and cons of a socialist economy - Why are unicellular organisms important - Angelantoni life science srl - Sadler commission on child labor 1832 - Wk 6 forum 1 Brittney - Calculate Investing in Productivity Improvements - Super's stages of career development - Donal o connor pwc - Gold coast city council find my property - Calculate ph of original buffer - Chapter 12 classical greece crossword puzzle - The alamo drafthouse case study - Bunsen burner temperature range - Square root of 1/8 - Multi step flow theory of mass communication - Creating, Choosing and Analyzing an Operating Budget - Co chair roles and responsibilities - Negative response letter - The holtzman corporation has assets of - Short paper outline - 250 mcg to mg - Justin spencer recycled percussion net worth - LITERATURE - Nursing - Nursing - Engineering thermodynamics formula sheet - A small business just leased - Prepare a multiple step income statement wileyplus - Daft organization theory and design pdf - Ted talk coaching and mentoring - Catching fire how cooking made us human sparknotes - Pendle community high school - Acids and alkalis for year 7 - Jm barrie net worth - READING In Folklore - Starting sentence for evidence