Solution-Estimate the amount of variable costs

Estimate the amount of variable costs

Assignment Help Managerial Accounting

Reference no: EM132507389

Question 1: Suppose that Snap Fitness estimates that each location incurs $4,000 per month in fixed operating expenses plus $1,460 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.)

Question 2: Using the information from part (a), what would monthly sales in members and dollars have to be to achieve a target net income of $3,640 for the month?

Question 3: Provide five examples of variable costs for a fitness center.

Question 4: Go to a fitness-business website, such as Curves, Snap Fitness, or Anytime Fitness, and find information about purchasing a franchise. Summarize the franchise information needed to decide whether entering into a franchise agreement would be a good idea.

Reference no: EM132507389

Questions Cloud

Find the total of lakes grind labor cost was : Find The total of Lakes grind labor cost was. Fun, Inc. produces children's games. Labor costs incurred during a recent period were corporate executives

Share prices when the whole market increases : Given that the risk-free rate is 3% and market return is 13%, what happens to the share prices when the whole market increases by 10%?

Weighted average cost of capital-merriwether building : Merriwether Building has operating income of $20 million, a tax rate of 40%, and no debt. It pays out all of its net income as dividends and has a zero growth r

What are the areas of strengths and areas of improvement : The RN to BSN program at this University meets the requirements for clinical competencies as defined by the Commission on Collegiate Nursing Education (CCNE).

Estimate the amount of variable costs : Estimate the amount of variable costs. What would monthly sales in members and dollars have to be to achieve a target net income of $3,640 for the month?

Change to the company capital structure : Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75% equity.

Differences between the two accounting standards : U.S. GAAP or IFRS? Are these rules comparable? What are the major differences between the two accounting standards? What was your rationale for choosing a rule?

Describe the treatment of smallpox disease symptoms : You are presenting as a Medical Provider for the treatment of smallpox disease symptoms during the 8th century Japan. This paper should be divided into two.

Determine the total cost would be : If Shum produces 10,000 units, the total cost would be. Shum Manufacturing, which uses the high-low method, makes a product called Kwan.

User Account

All Pages

Estimate the amount of variable costs

Reference no: EM132507389

Reference no: EM132507389

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT