Question 4 Fitness is a health and fitness Centre which provides two types of services Gym and Swimming Pool. The following information is available for the month of May 2021. The customers are charged on an hourly basis. Gym charges OMR 8.5 per hour and swimming Pool 5.5 per hour. Variable cost per customer for Gym is OMR 4.25 and for Swimming pool is OMR 3.5. Average number of customers expected to attend the Gym are 50 per day and swimming pool are 75 per day. Total fixed cost for the month of May for Gym is OMR 4000 and for Swimming pool is OMR 2400 per month. The Fitness Centre is open 25 days in a month. Demand for Football Training: Market research team of a company has suggested that demand for Football training is increasing and parents are interested to send their children for outdoor activities. The company is planning to close the Gym as daily customers for Gym are reducing and use the place to start a Football training Centre. The charge per student for Football training is OMR 6 per hour and variable cost is expected to be OMR 4.25. Fixed cost for running the Football training Centre will be the same as Gym. The company is expecting that the number of customers for Football Training will increase to 90 per day. Based on the above information of Fitness Centre, calculate the following in the month of May 2021: a) Number of customers' needs to break even for: 6 Marks. i) Gym ii) Swimming Pool b) Margin of safety in percentage for: 6 Marks i) Gym ii) Swimming Pool c) Using the calculation in (a) and (b) above evaluate what each calculation tells about the performance of Gym and Swimming Pool 6 Marks d) Calculate expected profit for the month of May 2021 if Fitness Centre continues Gym and Swimming pool. 7 Marks