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Many of you will some day own your own business. One rapidly growing opportunity is no-frills workout centers. Such centers attract customers who want to

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Many of you will some day own your own business. One rapidly growing opportunity is no-frills workout centers. Such centers attract customers who want to take advantage of state-of-the-art fitness equipment but do not need the other amenities of full service health clubs. One way to own your own fitness business is to buy a franchise Snap Fitness is a Minnesota - based business that offers franchise opportunities, For a very low monthly fee (\$26, without an annual contract). customers can access a Snap Fitness center 24 hours a day. The Snap Fitness website ( m ww.snapfitness.com) indicates that start-up costs range from $60,000 to $184,000. This initial investment covers the following pre-opening costs: franchise fee, grand opening marketing leasehold improwements, utilityrent deposits, and training. (a) Your atwwer is incorract. Suppose that Snap Fitness estimates that each location incuirs $4,000 per month in ficed ogerating expenses plus $2460 to laase equipment. A recent newspaper article describing no-frills fitness centers inditated that a Snap Fitness site inight require only 300 members to break even. Using the infocmation provided above and your knowledge of CVP ansiysis, eatimate the amount of variable costs. When performing your analysis, assume that this only foxed costs arc the estimated monthly operating expenses Suppose that Snap Fitness estimates that each location incurs $4,000 per month in fixed operating expenses plus $1,460 to lease equipment: A recent newspaper article describing no-frills fitness centers indicated that a Snap Fitness site might requice only 300 members to break even. Using the information provided above and your knowledge of CVP analysis, estimate the amount of variable costs: (When performing your analysis, assume that the only foxed costs are the estimated monthly operating expenses and the equipment lease.) Variable costs (in total) eTextbook and Media Solution

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