required:

Make a decision based on the above qualitative and quantitative analysis .

Opening new location: Pros: The academy has only single location which limit their position in the market so opening a second will help them to expand. Opening a new location will give the academy the opportunity to competing and outperform with central since the only have one location. Result in an Increase in the academy sales. It will increase the opportunity of having new members that reside close to the second location Cons: Opening new location requires many efforts that will take place in sharp's schedule which will affect the efficiency of his work in current location. Attract the audience to the new location require higher cost for the opening event. May lose some customers in the existing location since they will transfer their membership to the new one. The facility upgrade: Pros: Having more equipment will allow the academy to expand the number of classes given-one to four additional classes per week The new equipment will develop the appearance of the academy Cons: Purchase new equipment requires more investments It's not definite that the new equipment will increase the income because some members will only use the new equipment, The old equipment may lose its value since the customers will tend to use the new one Opening new location: 40% 144,745.64 18,093.20 126,652.44 80% 289,491.28 18,093.20 271,398.08 Differential Analysis sales cannibalization sales tatal sales cost of sales trainers purchase including Freight total cost of sale Rent administrative salary cash outflow total expense net income 43,568.43 3,015.65 46,584.08 40,000 30,000 10,543 127,127.18 -475 93,360.93 6,513.55 99,874.48 40,000 30,000 22,592.18 192,466.66 78,931 investments initial investments equipment cost launch event total 30,000 45,000 15,000 90,000 30,000 60,000 15,000 105,000 I ROI -0.5396 75.1796 The facility upgrade: Differential Analysis sales 1/week=52 6,006.46 4/week=208 24,025.84 cost of sales trainers purchase including Freight total cost of sale repairs and cleaning utilities 2,066.22 144.16 2,210.38 108.12 8,264.89 576.62 8,841.51 432.46 500 0 480 384.41 office interest and bank charges insurance telephone office supplies total expense net income 288 96.1 42.04 24.02 168.18 96.1 12.01 570 3,225.79 48.05 2,109 13,075.13 Investments Cost of upgrade media campaign tatal 28,000 2,000 30,000 28,000 2,000.00 30,000 ROI 10.7596 43.5896