PROJECT TWO: EVALUATING BUSINESS ALTERNATIVES Purpose: Identify which new business is more feasible of the two options below, based on break-even analysis and additional research. You will become more familiar with break-even calculations, business expenses, the marketing mix, and supporting your recommendations with facts Task: 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. Type all of your math calculations and provide them in the submission document. Step 2: Research the business models and industries involved. Step 3: Choose which business alternative is most feasible and prepare to explain why. Step 4: Write your submission including the following content Content: Include the following in your written submission. 1. Explain which option is the better investment/more feasible and why. Consider the break-even analysis and research to support your position. 2. Identify additional costs that are missing from the information provided. 3. Using appropriate terminology from the textbook, develop a marketing plan for the business explaining the following: a. What are the four P's involved for this venture? b. What type of market research needs to be completed? c. What type of market segmentation would be appropriate? d. What type of pricing strategy would be appropriate? e. What type of promotion would be appropriate? 4. Conclude the assignment by summarizing Which option is a better investment, hair salon, fitness center, or neither? Why? BMGT1101: PRINCIPLES OF BUSINESS PROJECT TWO: EVALUATING BUSINESS ALTERNATIVES 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: $80,000 Fixed Yearly Utilities Costs: $40,000 Costs Yearly Marketing Expense: $14,000 Owner Salary/Year: $45,000 1st Franchise Investment: $70,000 2nd Year Franchisee Investment: $30,000 One Time Equipment Fee: $120,000 Yearly Utilities Budget: $12,000 Yearly Building Lease: $30,000 Owner Salary/Year: $55,000 Zero per customer Estimated Variable Costs Products used per Customer: $1.50 Commission to Stylist: 50% Monthly Membership: $50.00 Estimated Average Sale per Customer: $25.00 Revenue PROJECT TWO: EVALUATING BUSINESS ALTERNATIVES Writing Style: This college writing assignment should follow APA Style to correctly cite your sources Make sure you cite your sources in the body of the paper with the author and year. Example: According to the World Wildlife Fund (2019), polar bears were designated a threatened species in 2008. Include the full citation on the "References' page. Example: World Wildlife Fund. (2019). Species Polar Bear. Retrieved 18 December 2019, from https://www.worldwildlife.org/species/polar-bear Consider using citation tools/websites such as: MyBib. Cite ThisForMe, or Scribbr. Points Distribution: Part: Break-even analysis for both options (math) Discuss better investment Four P's Market research Market segmentation Pricing strategy Promotion Conclusion recommendation APA citations Spelling and grammar Late penalty TOTAL Points 20 10 5 10 10 10 10 5 10 10 0 100 . Submission Guidelines Submit the following to Blackboard: Submit one Microsoft Word or PDF file. Use assignment template file. 1 cover page, 1 page math tabip, 2 pages of writing and 1 references page. 11 or 12 point font with 1-inch side margins, double-spaced, Calibri, Arial or Times New Roman font Use standard business English and be formal in your writing style. . . o Submission Guidelines Submit the following to Blackboard: Submit one Microsoft Word or PDF file. Use assignment template file. 1 cover page, 1 page math table, 2 pages of writing and 1 references page. 11 or 12 point font with 1-inch side margins, double-spaced, Calibri, Arial or Times New Roman font Use standard business English and be formal in your writing style. Check you work against the writing tips checklist in "Our Classroom -> "Projects" > "Citation and Grammar Tips" Include at least 2 references; use APA style citation. Make sure to cite all sources both in the body of your paper and on the references page. o in-text: Author and Year References page: Author, Year Title, Full URL Technical difficulties: if your file will not upload to Blackboard BMGT1101: PRINCIPLES OF BUSINESS PROJECT TWO: EVALUATING BUSINESS ALTERNATIVES o Try using a different browser, log out and log back in, and/or try again later. Contact IT Help Desk for assistance: 614-287-5050 or email helpdesk@cscc.edu If midnight of the due date is approaching, email the file to your instructor as a record of completion before the due date and add the file into the Blackboard tool the next day with a note about the submission challenges and emailed file. Late work: Submissions are accepted up to one week late for a 10% penalty Extenuating circumstances may waive late penalty. Please connect with your . PROJECT TWO: EVALUATING BUSINESS ALTERNATIVES Purpose: Identify which new business is more feasible of the two options below, based on break-even analysis and additional research. You will become more familiar with break-even calculations, business expenses, the marketing mix, and supporting your recommendations with facts Task: 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. Type all of your math calculations and provide them in the submission document. Step 2: Research the business models and industries involved. Step 3: Choose which business alternative is most feasible and prepare to explain why. Step 4: Write your submission including the following content Content: Include the following in your written submission. 1. Explain which option is the better investment/more feasible and why. Consider the break-even analysis and research to support your position. 2. Identify additional costs that are missing from the information provided. 3. Using appropriate terminology from the textbook, develop a marketing plan for the business explaining the following: a. What are the four P's involved for this venture? b. What type of market research needs to be completed? c. What type of market segmentation would be appropriate? d. What type of pricing strategy would be appropriate? e. What type of promotion would be appropriate? 4. Conclude the assignment by summarizing Which option is a better investment, hair salon, fitness center, or neither? Why? BMGT1101: PRINCIPLES OF BUSINESS PROJECT TWO: EVALUATING BUSINESS ALTERNATIVES 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: $80,000 Fixed Yearly Utilities Costs: $40,000 Costs Yearly Marketing Expense: $14,000 Owner Salary/Year: $45,000 1st Franchise Investment: $70,000 2nd Year Franchisee Investment: $30,000 One Time Equipment Fee: $120,000 Yearly Utilities Budget: $12,000 Yearly Building Lease: $30,000 Owner Salary/Year: $55,000 Zero per customer Estimated Variable Costs Products used per Customer: $1.50 Commission to Stylist: 50% Monthly Membership: $50.00 Estimated Average Sale per Customer: $25.00 Revenue PROJECT TWO: EVALUATING BUSINESS ALTERNATIVES Writing Style: This college writing assignment should follow APA Style to correctly cite your sources Make sure you cite your sources in the body of the paper with the author and year. Example: According to the World Wildlife Fund (2019), polar bears were designated a threatened species in 2008. Include the full citation on the "References' page. Example: World Wildlife Fund. (2019). Species Polar Bear. Retrieved 18 December 2019, from https://www.worldwildlife.org/species/polar-bear Consider using citation tools/websites such as: MyBib. Cite ThisForMe, or Scribbr. Points Distribution: Part: Break-even analysis for both options (math) Discuss better investment Four P's Market research Market segmentation Pricing strategy Promotion Conclusion recommendation APA citations Spelling and grammar Late penalty TOTAL Points 20 10 5 10 10 10 10 5 10 10 0 100 . Submission Guidelines Submit the following to Blackboard: Submit one Microsoft Word or PDF file. Use assignment template file. 1 cover page, 1 page math tabip, 2 pages of writing and 1 references page. 11 or 12 point font with 1-inch side margins, double-spaced, Calibri, Arial or Times New Roman font Use standard business English and be formal in your writing style. . . o Submission Guidelines Submit the following to Blackboard: Submit one Microsoft Word or PDF file. Use assignment template file. 1 cover page, 1 page math table, 2 pages of writing and 1 references page. 11 or 12 point font with 1-inch side margins, double-spaced, Calibri, Arial or Times New Roman font Use standard business English and be formal in your writing style. Check you work against the writing tips checklist in "Our Classroom -> "Projects" > "Citation and Grammar Tips" Include at least 2 references; use APA style citation. Make sure to cite all sources both in the body of your paper and on the references page. o in-text: Author and Year References page: Author, Year Title, Full URL Technical difficulties: if your file will not upload to Blackboard BMGT1101: PRINCIPLES OF BUSINESS PROJECT TWO: EVALUATING BUSINESS ALTERNATIVES o Try using a different browser, log out and log back in, and/or try again later. Contact IT Help Desk for assistance: 614-287-5050 or email helpdesk@cscc.edu If midnight of the due date is approaching, email the file to your instructor as a record of completion before the due date and add the file into the Blackboard tool the next day with a note about the submission challenges and emailed file. Late work: Submissions are accepted up to one week late for a 10% penalty Extenuating circumstances may waive late penalty. Please connect with your