Terry and Sarah have provided the following assumption for the projected income statement for the next five years for the new HIIT adventure.

$$

For fitness companies that operate on a membership model, managing memberships, subscriptions, and renewals is essential. This involves tracking member sign$-$ups, cancellations, and retention rates, as well as implementing effective membership pricing strategies to maximize revenue while maintaining competitiveness in the market. The most favorable membership option for our clients is the monthly subscription. For the HIIT program, clients will pay $$300$ per month for $3$ sessions per week or $12$ sessions per month. $$FitZone$$ will consider a $5\%$ increase every $2$ years in the monthly subscription.

$$

Total capacity is $5$ rounds per day, each lasting $1$ hour and $50$ minutes with $20$ persons per round, operating $6$ days a week, and $300$ days on a year $($Sundays and stat holidays the club will be closed$).$

$$

Drop$-$in fees per session are $$30.$ As long as the club has empty capacity, $10\%$ of weekly capacity can be completed by drop$-$in customers. The price will increase by $5\%$ every $2$ years.

$$

In $2025,$ the capacity utilization is projected to be $70\%,$ with a subsequent annual increase of $2\%$ in operating capacity thereafter.

$$

Additional sales, including vending and coffee machine sales, will account for $2\%$ of total sales.

$$

Operating expenses will include rent, depreciation of equipment $($using the straight$-$line method over $10$ years$),$ and depreciation of building improvement $($at $5\%$ annually$)$

$$

There will be the addition of $2$ new staff $($registered and certified trainers$)$ each earning $75$K annually, along with one admin manager earning $60$K annually with a $3\%$ annual increase. Sarah pointed out the potential for hiring unlicensed instructors at a lower annual salary and due to their extensive experience, which may go unnoticed by customers.

$$

Annual advertisement and marketing expense will amount to $20$K$.$

$$

Utilities, licenses, and other operating and admin expenses will be $5\%$ of annual sales.

$$

A $20\%$ allocated head office overhead, amounting to $4$K monthly, with a $3\%$ annual increase.

$$

There is a possibility of selling supplements that claim to guarantee rapid weight loss or muscle gain. Terry conducted research on some of these supplements and found that there was not sufficient scientific evidence to support this claim. and can you include recommendation for increasing the profibilit$($ in need this by today evening please$)$