...Snap Fitness Exercise Centers 12 May 2012 Part A & B –Variable Costs and Target Net Income Analysis CVP analysis requires that all company costs be identified as variable or fixed. Investopedia defines variable costs as, “costs that vary depending on a company’s production volume; they rise as production increases and fall as production decreases”(pg 1). Fixed costs do not change with an increase or decrease in the amount of production. Snap Fitness’ fixed costs are $4,000 a month for operating expenses and $2,000 for the equipment lease (Total $6,000). The amount of members estimated to break-even is 300 at a monthly price of $26. To find variable costs, the equation is listed below: (a) Break-even point = Variable costs + fixed costs + Net income 300*($26.00) = Variable costs + $6,000 + 0 $7,800 = Variable costs + $6,000 Variable costs = $7,800 - $6,000 = $1,800. (b) What would the monthly sales have to be to achieve a target net income of $10,000. (Fixed costs + target net income) / contribution margin ratio = required sales in dollars. Contribution margin ratio = contribution margin / sales. Contribution margin = Sales – variable expenses. $7800 – 1800 = $6,000 6000 / 7800 = 77% contribution margin ratio. ($6000 + $10,000) / 77% = $16,000/0.77 = $20,779 Based on the fixed costs provided, $20,779 in monthly sales would...
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...Snap Fitness would need to achieve 800 memberships to generate a monthly net income of $10,000. Snap Fitness Variable Cost Types Variable costs are costs that vary in total directly and proportionately with changes in the activity level. If the level increases 10%, total variable costs will increase 10%. If the level of activity decreases by 25%, variable costs will decrease 25%. Variable costs include direct materials and direct labor, costs of goods sold, and sales commission. A variable cost may also be defined as a cost that remains the same per unit at every level of activity (Kimmel, Weygandt, & Kieso, 2009). Variable costs for Snap Fitness can membership sales. Active memberships are important in determining how much revenue the fitness center can bring in monthly. Snap Fitness does not have an enrollment fee or contract, their standard membership fee of $26.00 will easily generate new customers. In addition to becoming a member, a customer can have a personal trainer for additional monthly costs. This cost will vary according to how often the customer wants to utilize the service. The cost can be higher or lower if the customer decides on individual training sessions or to split the cost with other members. Retail sales within the fitness center are considered variable costs. These include merchandise, supplements, vending, locker rentals and equipment sales. Most fitness centers do not require many employees. If it is a small facility, one or two employees are...
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...direct labor, costs of goods sold, and sales commission. A variable cost may also be defined as a cost that remains the same per unit at every level of activity (Kimmel, Weygandt, & Kieso, 2009). Variable costs for Snap Fitness can membership sales. Active memberships are important in determining how much revenue the fitness center can bring in monthly. Snap Fitness does not have an enrollment fee or contract, their standard membership fee of $26.00 will easily generate new customers. In addition to becoming a member, a customer can have a personal trainer for additional monthly costs. This cost will vary according to how often the customer wants to utilize the service. The cost can be higher or lower if the customer decides on individual training sessions or to split the cost with other members. Retail sales within the fitness center are considered variable costs. These include merchandise, supplements, vending, locker rentals and equipment sales. Most fitness centers do not require many employees. If it is a small facility, one or two employees are more than enough. Personal trainers are normally contracted for a fee based on the number of customers being served. Most fitness centers will not go over 10 to 12% in order to keep labor cost at a minimum. Most fitness centers require customers to pay via credit cards of debit cards. The merchant processing fees associated with these cards for customers monthly membership fees will vary based on how many customers attend the center...
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...Snap Fitness Franchise Analysis Sebastian Limon, Raja Medipalli, Trevor Moore, Bob Patton, Chad Shipman University of Phoenix ACC/561 Sanja Saracevic January 29, 2012 Snap Fitness Franchise Analysis Snap Fitness is a franchisor of personal fitness devices and associated training modalities as well as 24 hour access for members. The Minneapolis, Minnesota based franchisor claims to equip the worldwide network of franchisees all the necessary equipment in a safe and secure environment for both cardio and strength training. Results for weight loss are guaranteed after an initial "Basic 8" personal training session and is only available to "full memberships" according to the company's website (http://www.snapfitness.com/guarantee). The company appears to focus a great deal of effort on not having a membership agreement while still offering numerous benefits to clients. This is according to the website which appears to be exclusive to members. This submission is accomplished in an effort to compare the requirements of activity of BYP19-7 (John, 2009, p. 1001) with basic franchising information intertwined in the discussion. Viability of Franchising as a Business Model Franchising is a viable alternative for a business rather than the conventional startup particularly when a potential owner has little to no previous experience managing a business. The number of businesses as reported without a business plan tend to reflect this statement, according to "Willard and Shullman...
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...CVP Analysis Introduction According to “Snap Fitness,” (2011), “economically, the health club industry has proven to be recession-proof, averaging an 8% annual growth rate since the early 1990’s across all health clubs and gyms,” (Fitness Franchise Opportunities). Snap Fitness franchising offers opportunities for entrepreneurs to open a successful business that has already allocated the following benefits and services for consumers and for the franchisee: Location of fitness needs is open 24/7 Can be easily operated with one employee Affordability for the owner and consumer Business training and start-up marketing include Snap Fitness clubs that have been open for 2 years as of December 31,2012 o (13%) have more than 740 members o 387 (50%) have more than 469 members o 523 (68%) have more than 305 members. This paper will identify the estimation of Snap Fitness’ start-up and variable costs with the inclusion of a cost-volume-profit analysis, the measures needed to achieve net income, its various variable costs, and an analysis on why opening a franchise with Snap Fitness would be a good idea. Estimation of Snap Fitness’ Start-up and Variable Costs (Section A) In determining what Snap Fitness estimated variables are, one needs to look at the monthly fixed costs. Currently, each location of Snap Fitness spends $4,000 in fixed operating expenses and $2,000 to lease equipment. The total of each location’s fixed cost is $6,000. To break even for their...
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...Snap Fitness is a Minnesota-based business CHAPTER 19 – PAGES 1001-1002 BYP19-7 Many of you will some day own your own business. One rapidly growing opportunity is no-frills workout centers. Such centers attract customers who want to take advantage of state-of-the-art fitness equipment but do not need the other amenities of fullservice health clubs. One way to own your own fitness business is to buy a franchise. Snap Fitness is a Minnesota-based business that offers franchise opportunities. For a very low monthly fee ($26, without an annual contract) customers can access a Snap Fitness center 24 hours a day. The Snap Fitness website (www.snapfitness.com) indicates that start-up costs range from $60,000 to $184,000. This initial investment covers the following pre-opening costs: franchise fee, grand opening marketing, leasehold improvements, utility/rent deposits, and training. Instructions (a) Suppose that Snap Fitness estimates that each location incurs $4,000 per month in fixed operating expenses plus $2,000 to lease equipment. A recent newspaper article describing no-frills fitness centers indicated that a Snap Fitness site might require only 300 members to break even. Using the information provided above, and your knowledge of CVP analysis, estimate the amount of variable costs. (When performing your analysis, assume that the only fixed costs are the estimated monthly operating expenses and the equipment lease.) (b) Using the information from part...
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...and respectful to her elders and higher authorities especially to her parents, sharp-minded yet sassy, patient but can have a quick temper, panics very easily when she’s on the edge but she’s high spirited when a victor comes her way. Skills: Master of the legendary blade Soul bane, the nightmare to all monsters. This blade can only be wielded by the bloodline of the Spektors. A black belt in hand-to-hand combat, for the skills and knowledge she obtains are from her great, great, great grandfather Garfield Arthur Spektor. A real sharpshooter with her Caliber Bow which doesn’t include her having the eyes of a hawk. Excellent with various sorts of magic. From various spells to advance exorcists she can master any spell with the snap of a finger. This also include her knowledge with her arsenal of weapons and gadgets some would be her Latchwhips, Capture Cards, Reading Glasses, Power Bands, Dash Boots, Cloak of Stone, the Boundless Bag and her signature Freezerburn Scrunchee. Magic Arsenal Her weapons skill is not only in top shape, for the various gadgets and hidden spells she’ll obtain during her journey are very useful while others may not be. Cloak of Stone An ordinary piece of cloth at first, however when worn the wearer shall become invisible and undetectable to all beings. Reading Glasses Laura is very studious when she works. The reasoning is because of these specially design reading glasses. They don’t just make her cute, but have her able...
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...Younger Never put someone else infront of your family Because family is blood. [pic][pic] Don’t judge someone if you don’t know their true colors. Quote 1: “There are some ideas we ain't going to have in this house. Not as long as I am at the head of this family” Qoute 2: “Honey . . . life don't have to be like this. I mean sometime people can do things so that things are bet” What I put in my thinking head is FAMILY. You should never give up on your family even if your falling off and don’t have nothing no money you will always have your family there to support each other no matter what the struggle is. You should always fight and never give up because you never know a miracle might happen and your life could change in a snap of a finger. You shouldn’t put nothing before your family because your family is blood they will always be around no matter...
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...Costing Methods: Super Bakery, Inc. George Mancuso ACC/561 Accounting March 18, 2013 Lisa Parker Abstract Super Bakery, Inc., a virtual corporation is a supplier of mineral-, vitamin-, and protein-enriched doughnuts and other baked goods to institutional food distribution centers nationwide (Kimmel, Weygandt, & Kieso, 2009). The company has grown at an average rate of 20% annually since 1990 but persistent challenges of identifying opportunities for cost efficiency in using traditional costing methods requires new strategy. Desire for new “system that would more accurately assign the costs of each order” (Kimmel, Weygandt, & Kieso, 2009, pg. 865), Super Bakery is exploring activity-based costing (ABC) management. Super Bakery, Inc. In 1990, former Pittsburg Steeler’s player Franco Harris incorporated the Supper Bakery, a nationwide supplier of mineral-, vitamin-, and protein-enriched bakery goods to the institutional food market (Kimmel, Weygandt, & Kieso, 2009). As a virtual corporation, Super Bakery’s core business functions are maintained within the company. Other business functions such as “selling, manufacturing, warehousing, and shipping—are outsourced to a network of external companies… to add maximum value to the company while making the minimum investment in permanent staff, fixed assets, and working capital” (Kimmel, Weygandt, & Kieso, 2009, pg. 865). Currently the company is using a traditional costing method that does not identify the accurate...
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...also been many companies that have suffered greatly due to poor management or poor implementation of the project. Often times the project itself was just ineffective as a whole and would have failed no matter how the process was managed. One company that failed to implement a new process of customer relations was Snap-on Inc. In 1997 Snap-on tried to keep up with the ever-changing ways of the consumer. In turn they suffered greatly due to the poor project itself as well as implementation of it. While the overall project was not a terrible idea there were many other routes that could have been taken. Along with other routes being taken there were many variables that could have made the unsuccessful project very successful instead. Snap-On Inc is a leading U.S. designer, manufacturer and marketer of high-end tools and equipment to professional tool users. It was founded in 1920 by Joseph Johnson and William Seidemann and was originally branded the “Snap-On Wrench Company.” It was founded in Kenosha, Wisconsin and currently employs about 11,500 people worldwide. It is presently worth just over $2.4 billion. Snap-on is a very solid company financially and in recent years Snap-On’s stock has soared to new highs. The company, however, has not always been on the up and up. They suffered greatly due to a project that they thought would launch the company to new levels. They expected huge gains due to the new project but instead almost put themselves out of business (Yahoo,...
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...A report of Team D-1’s Analysis Of The Black & Decker Corporation in 2000 Executive Summary Black & Decker had always been a market leader in the power tools industry. Many changes took place that helped out in the company in the short run, but hurt in the long run. In 2000 Black and Decker Corporation was still reeling from the financial and strategic problems stemming from the company's acquisition of Emhart Corporation in 1989. In late 1998 Black & Decker management celebrated the completion of an almost decade-long effort to divest nonstrategic business gained through its 1989 acquisition of Emhart Corporation and expected the company to enter a long-awaited period of growth as its entire management refocused its attention on its core power tools, plumbing, and security hardware business. Archibald believed that "This portfolio restructuring will allow us to focus on core operations that can deliver dependable and superior operating and financial results." However the portfolio restructuring did little to improve the market performance of the company's securities. Yet Archibald and the management continued to express confidence that the company's streamline portfolio would allow Black & Decker to achieve revenue and earnings growth that the market would find impressive. So far the 1998 divestitures have not produced steady increases in the company's stock price, but look promising for the future due to the efforts to refocus efforts on the successful power tools...
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...BUS/475 Strategic Plan Part II: SWOTT Analysis Freshly Squeeze Fit Center Lisa Martinez October 30, 2014 Professor Richard Taylor Table of Contents I: Introduction II: SWOTT Table Analysis II: External Forces: What is an external force? a). Environmental b). Economic c). Social d). Technological IV: Internal Forces: What is an internal force? a). Strategy b). Goals c). Leadership V: Economic and Legal/Regulatory Trends VI: Adapting to Change VII: Supply Chain Operation VIII: Issues and/or Opportunities IX: Conclusion Introduction Freshly Squeeze Fit Center is the alternative fitness studio center that enhances the overall quality of life by integrating holistic remedies such as natural freshly squeeze juices, vitamins and nutrients supplements, nutritionist counseling, meal preparation demo, along with 15-30 minute workouts. Also we specialized in therapeutic treatments to contour the entire body. Our specialized trainers will guide committed clients along the way towards the path of success. As we plan the upcoming opening of our new studio, we are committed to the continuance of personal education in order to excel in achieving long life lasting results for our consumers. Therefore the following SWOTT (Strengths, Weaknesses, Opportunities, Threads, and Trends) analysis is attached, this has helped us recognized our strengths and weaknesses in order to comprehend where the possibilities of opportunities may be as well as potential...
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...The Fit Shop The Fit Shop Ltd. is a brand new firm that will open its doors exactly four months from today. Its business objective is to sell all types of training, fitness, conditioning, and exercise equipment to the general public. The Fit Stop plans to specialize in this equipment and to provide customers with personalized advice geared to a customer's specific training or conditioning needs (e.g. training for a particular sport, rehabilitation from injuries, strengthening of specific muscle groups to deal with back pain, general conditioning and fitness), regardless of the age of the customer. In order to provide high quality advice, each store will employ a physiotherapist (to provide advice on problems such as injuries or chronic back pain) and a person with a bachelor's degree in kinesiology (to provide advice on training for various sports or other physical activities). In fact, a staff member will even sit down with customers and develop a personalized training or conditioning program that meets their own specific objectives and needs at no cost to the customer upon purchase of equipment. The remainder of the staff in the store will consist of a manager, with a Bachelor of Commerce degree, and sales staff, who will have at least a high school diploma. Due to the long opening hours, it is expected that between 8 and 12 salespeople will be needed for each store. Because the stores are located in shopping malls, they will operate on a seven-day-a-week basis...
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...Kathmandu, you will certainly meet visitors from all over the worlds. These streets are also known to have the most tours and travel companies. Besides, trekking in Nepal offers you the opportunity of meeting with the locals as they juggle in their daily activities. When to visit Nepal Trekking in Nepal is most appropriate during the dry and warm spells of the year. These seasons occur between the months of March to June and between September and November. The dry and warm season offer conducive temperatures and clear skies. What to expect Once in Nepal, you will find many treks that will offer you opportunities to improve your physical fitness. A few trips along the hills in Nepal will provide you with the opportunity of finding an appropriate trek. If you are physically fit, you will qualify to get accommodation and a guide in Nepal. Your physical fitness is important because at times you will undergo long treks in some of the remotest places of Nepal. It is advisable to have some experience in climbing alpines before you decide to trek the highest summits, which have altitudes of over 5500 meters. Legal requirements Trekking in Nepal requires you to have valid police permits. These permits are provided in accordance with Nepal tourism board. Accommodation Various companies offer accommodation. In case you are unaware of the providers of these services, you should visit Nepal travel agency and they will give you Nepal travel guides to choose the best place to get accommodation....
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...Mark Cardona Spc1024 Biography Speech Outline Greg Plitt: The Fitness Model Genera Purpose: Is to educate those who does not know about the fitness community and how Greg Plitt life changed after he made his decision to move forward with the community of Modeling. Specific Purpose: Greg Plitt legacy it was to impact those who doubt them self and had no self confidence what's so ever, In fact Greg Plitt his legacy was so big that he influence the world by his presence and word of wisdom about life lessons. I. Introduction A. Opening statement: Greg Plitt is known in the Fitness Industry but Greg has other roles that he played such as a motivational Speaker around the world and a Actor. B. Topic Introduction: Greg Plitt it's a Professional Fitness Model, who dedicate himself to fitness and health and to motivate others who have not found their way. C. Topic Relevance or Importance: Greg Plitt Fame came about after he got out of the military he was in the United State Military Academy and became a Ranger for five years. After that he took on Fitness Modeling and for 5 years straight he broke the record by being on a Fitness Magazine Cover every month! But not only he was a Fitness Model he was also a actor, entrepreneur, and Motivational Speaker. Adding to that he became America 1st Male Fitness Model. D. Thesis: We are going to be talking about how did Geg Plitt grew up with and where, how did he became a model and acting career, what was his achievements...
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