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, without an annual contract, customer's can access a Snap Fitness center $24$ hours a day. The Snap Fitness website $($

www$.$snapfitness.com$)$ indicates that start$-$up costs range. This initial investment covers the following pre$-$opening costs: franchise fee, grand opening marketing, leasehold improvements, utility$/$rent deposits, and training. Suppose that Snap Fitness estimates that each location incurs $$5,000$ per month in general operating expenses and $$1,000$ to lease equipment. Other costs are equal to $$500$ per$/$month plus $$1$ per membership sale. Total variable costs were not provided. Using the information provided above, your own research and your knowledge of CVP analysis, estimate the breakeven point in memberships and dollars for a Snap Fitness Franchise. $($When performing your analysis, please indicate where all of your numbers are attained and show all of your calculations.$)$

Provide several examples of variable costs and fixed costs for a fitness center. Discuss how a fitness center's cost structure, cost behaviors, and how you would 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?