How to Complete This Assignment: Step 1: Complete a break-even analysis for BOTH options using this formula: Sale units to break-even = fixed costs / (sales price per unit - variable cost per unit) Determine how many sales units are needed per month and per hour. Determine what is the dollar value of sales necessary based on the break-even units. 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 Products used per Customer: $0.75 Variable Commission to Stylist: 50% Costs Estimated Average Sale per Customer: $25.00 Revenue Monthly Membership: $50.00