Costing a service

Fitness Brad is a personal trainer. As part of his business, he runs personal one$-$on$-$one sessions with

individual clients and group boot$-$camp training sessions. He tends to run the one$-$on$-$one classes and the

group sessions are run by one of his employee trainers. All classes are run in a large studio that Brad

rents, using the stock of equipment that Brad has bought for the business.

Brad has started to get interest from clients for a new "Winter Blues Boot Camp" program. This class will

run for $10$ weeks, with $3$ x one$-$hour classes per week, with $15$ clients in each class. Participating clients

will receive a specially branded hoodie and a drink bottle that Brad will purchase from a wholesaler. Brad

thinks we can sign up $75$ clients to participate.

Brad would like to figure out the cost of the new program so he can calculate the price to prospective

clients. He has put together a provisional list of costs:

Required:

Assuming the cost object is the new Winter Program, classify each cost as direct or indirect

Calculate the:

a$.$ Total direct cost of the new Winter Program

b$.$ Direct cost per client in the new Winter Program

How should Brad go about setting the price per client for the new Winter Program?