Question
question 1 Scenario 1: If both Devin and the trainer run simultaneous sessions and both are at full capacity, what is the gross revenue for
question 1 Scenario 1: If both Devin and the trainer run simultaneous sessions and both are at full capacity, what is the gross revenue for an hour of training at the facility?
question 2 Under Scenario 1, what is the unit contribution / hour for the business? (note: recall that Devin and the trainer are working simultaneously during that hour)
question 3 Under Scenario 1, what is the monthly break-even number of training hours? (round up to the nearest whole number)q
question 4 Continue with the assumptions of Scenario 1. Now, also consider that Devin has a profit goal for the business of $25,000/ month. What is the new monthly break-even number of training hours? (round up to the nearest full hour)
Devin is a retired professional soccer player who wants to start a soccer training school. His start up costs are relatively low and only include a rental fee for the training facility and advertising. His facility rental is $15,000 / month and advertising is $3000 / month. The training facility is large enough to hold two simultaneous training sessions so Devin wants to hire one person to conduct training sessions with him simultaneously to increase the total capacity. To accommodate school age players, he plans on training 4 days a week for 5 hours after school each of those days. Each training session last for one hour. Thus the maximum capacity per week per instructor is 20 training sessionsStep by Step Solution
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