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Q3 (Wherever needed, round up if you get a fractional value for the membership. For example, roundup 400.001 to 401; 400.5 to 401) A
Q3 (Wherever needed, round up if you get a fractional value for the membership. For example, roundup 400.001 to 401; 400.5 to 401) A group of developers is opening a health club near a housing development. The developers incur an annual fixed cost of $865800 for the building, equipment, utilities, the staff. Each enrolled member generates power worth $2 per month, which the club sells to DEWA (Dubai Electricity and Water Authority). The club spends $200 per member on water, towels, laundry, and other services. Each enrolled member pays $175 per month for the membership. a) How many members will the club need to break even? What is the breakeven in dollars? After the first year, the company can double the breakeven membership (breakeven members in the first year) and reduces the membership fee from 175 to 150 b) What would be the profit in the second year c) If the developers need a profit of $806920 in the second year, how many members need to be enrolled? d) If the developers spend for an advertisement campaign $27400 in the second year, how many members should the club enroll to break even?
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