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Discuss the company based on expected enrollment

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Reference no: EM131729391

To make use of idle space (15%) a fitness company is considering opening a yoga studio in that space. I am to determine what the profit would be for the company based on expected enrollment. And also what is the average enrollment level for a 10 week session to be able to produce an annual net profit of 25,000.

Data Given:

Classes offered over a 10 week period, these 10 sessions offered continuosly throughout year (5 consecutive sessions per year)

Classes for each session 6 time slots per week (so 60 classes over a 10 week session)

Expected enrollment for the 6 time slots is 122

Class cost 130 for 10 week session

Expenses:

Instructor salary 125/per class

Insurance due to risk $1000 for each 10 wk session

Fixed overhead costs of $1500 have been allocated to each 10 week session

Other incremental costs for 10 week session : heat $2000

Annual advertising $15,000

Free outfit with each enrollment $28

Monthly lease 5000 for entire location

Reference no: EM131729391

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