Please answer by explaining it with the calculations, not with excel sheet.
OVERVIEW l:I'iper Kai Fitness Incorporated WEI-5} is a general tness studio operator and tness equipment manufacturer that was founded in 1934 by Jack acltie] Lawrenoe. The studio provides an extensive range of tness training equipment personal training, and group activities The company operates 1t] tness studios across California, including one flagship location in Los. ngeles l'he oompany also manufactures a line of 1|:I'iper Kai tness equipment that includes treadmills, stationary bikes, ellipticals, and stairclimbers. These are sold at the 10 studios, online, small tness stores and through mass merchandisers including Wal-Mart. _}ackie has hired your team of consultants to help with some operational and strategic decisions the company is PART a (3 Marks) Jackie believes that the studio has been successful for over 3:\" years because of its highly trained staff, strong cost control in operations, body-positive and inclusive philosophy:I and commitment to controlling membership numbers to avoid tat-ingestion. 1illit'laile that has led to lower overall members than some cotnpeting gyms, this has also resulted in signicantly lower member turnover than the industry average,I reducing customer acquisition coeLs. It-Iembers have several options for payment including bi-weeltly payments of FM], monthly payments of \"Ell, or an annual membership fee of$l,3llll. 'lhe gym operates 4H weeks a year, with two weeks off during the winter holidays, one in summer, and one in the fall1 often for cleaning and maintenance purposes. t the start of the scal year next montl1,_]acltie is integrating mixed martial arts classes into the snidio, using I [I'll] square feet that has never been utilized {this will be referred to as the 'martial arts gym '.'} l'he dasses will be offered over a twelve- week period [called a session} with four sessions running consecutively every year Classes will be two hours long each once a week, and will be scheduled as following: The expected registration per session is l-l participants {participants only attend one class per week for 12 consecutive weeks}. The studio only has the capacity to hold a maximum of twenty participants at a time. Menibers would pay an additional $250 to participate in the 12'week sessions with no refunds offered for missed classes. Members who register will also receive as part of the session a Viper Kai uniform {costing $20} and a martial arts belt {costing $l} which are supplied \"free of rJ1arge" by VICE. Staining gloves {costing 53]} can be purchased separately by members whirh are sold by HM at cost For every session1 even if it is a repeat customer, they receive the uniform and belt The studio is not expected to have any impact on membership registration trends. The current monthly rent for the ll],[lllll square foot agship suidio is $4 per square foot. The operation of the martial arts dasses is estimated to increase utility costs by Eli!!! and sanitation costs by Hill for each 12- week session {inclusive of all nine class times]. insurance coverage will also have to be extended due to
