Acctg 561 – week 5 lt assignment a+

 ACCTG 561 – Week 5 LT Assignment

Get a plagiarism free copy of this essay from our experts
Acctg 561 – week 5 lt assignment a+
Just from $13/Page
Order Now

This assignment is about CVP and break-even analysis. Your team should assume the role of prospective franchisees. Complete the BYP 19-7, below. Then write a paper using the outline below.

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 full-service 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. You can find updated amounts on the website for Snap Fitness. 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 per member. (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 (a), what would monthly sales in members and dollars have to be to achieve a target net income of $10,000 for the month?

(c)      Provide five examples of variable costs for a fitness center.

(d)      Go to the website for Snap 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.

Here is an outline you can follow for your team paper.

I.    Introduction. Your paper is about a franchise opportunity that you are considering. Talk about the company you are looking at, Snap Fitness. Briefly introduce the company, giving the company’s history, organizational structure. Then explain that the company grows and expands using franchising opportunities.

II.    Discuss how franchising works, from the perspective of the franchisor (Snap Fitness) and the franchisee (your team). Discuss the pros and cons of franchising. Based on a Google search of complaints about the Snap Fitness franchise opportunities, comment on the concerns you have, if you have any.

III.    Present the financial information you have obtained, and perform your CVP analysis. Here would be a good point at which you show what variable cost per member is (you must calculate). 

IV.    Tell what you think about this opportunity. Based on the preceding parts of your paper, provide a recommendation. Would your team accept this opportunity or reject it. Explain your decision.

The paper should be between 1500 and 1800 w 

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 30% with the discount code ESSAYHELP