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e 10-1 BMGT1101: PRINCIPLES OF BUSINESS PROJECT TWO: EVALUATING BUSINESS ALTERNATIVES Now Business Options: 1. HAIR SALON 2. FITNESS CENTER Operation Hair salon that services For men, women, and children 1000 square feet Seating area and 8 open booths Small operation fitness center For ages 13 and up 5000 square feet Industry Similar to Supercuts Similar to Anytime Fitness Location Any strip mall in a suburb of Central Ohio. Hours 16 hours per day from Bam - 10pm, 7 days a week Estimated Fixed Costs 10 hours per day from 10am - 8pm, 7 days a week. Yearly Building Lease: $80,000 Yearly Utilities Costs: $40,000 Yearly Marketing Expense: $14,000 Owner Salary/Year: $45,000 1st Franchise Investment: $70,000 2nd Year Franchisee Investment: $30,000 One Time Equipment Fee: $120,000 Yearly Utilities Budget: $12.000 Yearly Building Lease: $30,000 Owner Salary/Year: $55,000 Zero per customer Estimated Variable Costs Products used per Customer: $1.50 Commission to Stylist: 50% Estimated Revenue Average Sale per Customer: $25.00 Monthly Membership: $50.00 PUOINCOS ALTERNATIVES Purpose: Identify which new business is more feasible of the two options below, based on break-even analysis and additional research. You will become more familiar with break-even calculations, business expenses, the marketing mix, and supporting your recommendations with facts. Task: Step 1: Complete a break-even analysis for BOTH options using this formula: 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. Type all of your math calculations and provide them in the submission document