Question

if you could add the equations used to find each that would be helpful.

New Business Options: 1. HAIR SALON 2. FITNESS CENTER Operation Hair salon that services For men, women, and children 1000 square feet Seating area and 8 open booths. Small operation fitness center For ages 13 and up 5000 square feet Industry Similar to Supercuts Similar to Anytime Fitness Location Any strip mall in a suburb of Central Ohio. Hours 10 hours per day from 10am - 8pm, 7 days a week. 16 hours per day from 6am - 10pm, 7 days a week. Estimated Yearly Building Lease: $70,000 Fixed Yearly Utilities Costs. $45,000 Costs Yearly Marketing Expense: $14,000 Owner Salary/Year: $55,000 1st Franchise Investment: $60,000 2nd Year Franchisee Investment: $30,000 One Time Equipment Fee: $110,000 Yearly Utilities Budget: $12,000 Yearly Building Lease $25,000 Owner Salary/Year: $55.000 Zero per customer Estimated Variable Costs Products used per Customer: $0.75 Commission to Stylist: 50% Estimated Revenue Average Sale per Customer $25.00 Monthly Membership: $50.00

Answer 1

Solution Hair sal fitness Center Year two Fitness center Year one Hair Salon *** Rounded up Broeak-even in Here, Break in Unite= in unite 12 selling selling Price per selling Price per Variable cast per unit Cost Per Here, selling Price = 15 Unite Break- per year Break-even in Break-even in Break-even in 1566 units = Units = unite = fixed cost Fixed cost fixed cost 1305 Price per Variable unit Variable unit- Rounded CostPer Unit Unit even in Here, Here, fixed Hour cost =$ 184,000, fixed cost=$262,000 fixed costa Break- $ 232,000 ISE Price selling Units per unit= $25.00 Per Ünit = $50.00 Selling Price Perunit = $50.00 Break- variable cost Variable cost vai able topt per unit = $13.25 per unit = $0.00 per unit=$0.00 10 x Break-even Break-even Break-even in unite in Unite in units 3 $ 184,000 $ 262,000 - $ 232,000 $ 2500-$13.25 $ 50.00 - $0.00 4. $ 50.00 -$0.00 p 184,000 $ 262,000 $232, ooo $ 11.75 & So.oo Brea $50 15.660 unite 5240 Units = (app) 4,640 unite per Rounded up. Bree Break even in SOVE Units Break-even in Break-even in Broeak-evenin units per month units per month / units per month = Break even Units Break-even in Break-even in Unite Unith 12 sale per month 12 He90. 12

Break-even. Break even. I Helle, Break-ever Here, Break- , Unite=15,660 l in Unite= 5,240 Center two Fitness center year two Hair salon Fitness center Year one Here, in even in unite Break-even unite per Month even in 4,640 Break-even in units per month in units per month 5240 15,660 12. 12 4,640 12 = 387 units (app) coxt -ceper viable Per Unit 437 units lapp 1305 units Rounded up Break even in Units pert Hour こ = 2,000 Break-even in units per How= Break-even in Units Break-even in Break-en even in Units per Hour 2 / Units PerHour- Break-evenin Break. even in Units Units 16X 365 166365 0.00 topt 0.00 104 365 even 15,660 3650 4,640 5840 5,240 5 840. 0.897 0.9 units (app) 0.79 units capp) $0.00 ite 4.29 u units (app) Break even in sales revenue per year $= Break even in. Sales Révenue fixed COBI Contaibution Break-even in sales Revenue Break-even in sales Revenue Fixed cost contribution in onth fixed cost contribution Margin Ratio Margin Ratio min Margin Ratio , Herre, fixed cort= $184,000 Here, fixed cost= $262,000 Here, fixed Copt = $232,000

sales tales en & 50.00 $ 50.00 $50.00 fitness conter Hair Salon fitness center Year Two Year One contoibution Contribution Contribution Marging Margin Ratio= Margin Ratio= Ratio contribution contaibution contribution sales. = $11.75 $50.00 $ 25.00 = 0.47 Break-even Break-even Break-even in Sales Revenue in sales Revenue in sales Revenue $184,000 $232,000 $ 262,000 0.47 1 =$391,489 Copp) = $ 26200D = $ 232,000 Break-even in Break-even in Break-even-in Dallars per Dollars per Month Dollars per month Month = Break-even in Break-even in = Break-evenin Dallars Dollars Dollars 12 12 = $ 262,000 = $ 232,000 $391, 489 12 12 12 :$ 21,833 (app) - $ 19,333 ens lapp = $32,624 Lapp) Break even in Break even in Break-evens in Dollars per hour Dallars per How Dollars per Break-even in b= Break-even Break-even Dollary in Dollars in Dallars Lox365 188.365 16x365 $ 391; 489 $262,000 = $ 232,000 3650 5840 2 $107 Capp) = $ 44.86 (app) - $ 39.73 (app) 12 . How 5840