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Sale units to break-even = fixed costs / (sales price per unit - variable cost per unit) Determine how many sales units are needed per

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

1. HAIR SALON

  • Operation

Hair salon that services For men, women, and children 1000 square feet Seating area and 8 open booths.

  • Industry

Similar to Supercuts

  • Location

Any strip mall in a suburb of Central Ohio.

  • Hours

10 hours per day from 10am - 8pm, 7 days a week.

  • Estimated Fixed Costs

Yearly Building Lease: $70,000 Yearly Utilities Costs: $45,000 Yearly Marketing Expense: $14,000 Owner Salary/Year: $55,000

  • Estimated Variable Costs

Products used per Customer: $0.75 Commission to Stylist: 50%

  • Estimated Revenue

Average Sale per Customer: $25.00

2. FITNESS CENTER

  • Operation

Small operation fitness center For ages 13 and up 5000 square feet

  • Industry

Similar to Anytime Fitness

  • Location

Any strip mall in a suburb of Central Ohio.

  • Hours

16 hours per day from 6am - 10pm, 7 days a week.

  • Estimated Fixed Costs

1st Franchise Investment: $60,000 2nd Year Franchisee Investment: $30,000 One Time Equipment Fee: $110,000 Yearly Utilities Budget: $12,000 Yearly Building Lease: $25,000 Owner Salary/Year: $55,000

  • Estimated Variable Costs

Zero per customer

  • Estimated Revenue

Average Sale per Customer: $25.00 Monthly Membership: $50.00

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