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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.
Question:
Provide five examples of variable costs for a fitness center.
- List five variable costs and describe why they are variable.
- How do they vary with volume?
Recognize the decision variables, exogenous variables, performance measure and intermediate variables. Illustrate the relationships between variables identified in part 1. Compute the break-even point
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The job costing system of Johnsons custom shop has five activities which are employed as indirect cost pools
A company makes a product out of metal. They employ two pounds of metal that costs them $20 per pound. They pay their employees $25 an hour and it takes average of 1.3 hours for them to make the final product.
Kiel Center sells only on credit (no cash sales). Prior collection patterns describe that 28% of month's sales are gathered in the month of sale, 51% are collected in month after the sale, and 19% are collected in second month after the sale.
Prepare a flexible budget performance report that shows both activity variances and revenue and spending variances for October.
Recognize three key learning points with respect to application of concepts like fixed costs, variable costs, contribution margin, breakeven analysis, indifference point, and operating leverage to organization's overall financial performance.
What are the components of a budget? Are they same for every organization? Why or why not? Should every organization forecast its operating budget? Why or why not?
Ridge company is in the process of determining its reportable segments for the year ended December 31 2012. As the person responsible for determining this information, you gather the following information.
Compare and contrast a static budget and the flexible budget in terms of both characteristics, timing and uses.
Mr. Carter is manager of Simmons Farm and Seed Company, a wholesaler of fertilizer, seed, and other farm supplies. The company has been successful in current years primarily because of great customer service, flexible credit terms, customized orde..
How many units require to be sold in order to break-even? Compute the raise in net income if an additional 1,000 units over the break-even point are sold.
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