Question
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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