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Training Co manages a group of personal trainers. The group currently has capacity to sell 3 2 0 , 1 - hr sessions per month
Training Co manages a group of personal trainers. The group currently has capacity to sell hr sessions per month for $ per session. The variable cost of each session is $ per hour. Beyond these costs, the group also incurs $ in corporate, administrative and marketing costs per month. The group currently has no spare capacity.
Training Co has been approached by a local sporting team who is wanting to secure the services of one of the firm's trainers over the next month. This will include hr sessions and the sporting team is willing to pay $ per session. In order to offer these sessions, Training Co will incur their standard session variable costs and will aslo need to spend $ to purchase new equipment that will be used for sessions with the sporting team.
Required:
Evaluate and discuss whether if this proposal is acceptable. As part of your overall evaluation, consider both financial and nonfinanancial factors.
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