Reference no: EM132935242
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 10 hours per day from 10am - 8pm, 7 days a week. 16 hours per day from 6am - 10pm, 7 days a week.
Estimated Fixed Costs
Yearly Building Lease: $70,000
Yearly Utilities Costs: $45,000
Yearly Marketing Expense: $14,000
Owner Salary/Year: $55,000
1st Franchise Investment: $60,000
2nd Year Franchisee Investment: $30,000
One Time Equipment Fee: $110,000 Yearly
Utilities Budget: $12,000
Yearly Building Lease: $25,000
Owner Salary/Year: $55,000
Estimated Variable Costs
Products used per Customer: $0.75
Commission to Stylist: 50%
Zero per customer
Estimated Revenue Average
Sale per Customer: $25.00
Monthly Membership: $50.00
Problem 1: 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.