EAGLES SOAR FITNESS – TAKING YOUR FITNESS TO NEW HEIGHTS

EAGLES SOAR FITNESS is considering starting a new program. Your Director has asked you to assess the viability of the program and recommend what ESF should do

EAGLE WARRIOR

This new eight-week program is offered by the center to members ($5 per class) and non-members ($10 per class). The current plan is to offer 60 minute classes three times a day (5:30 a.m., 12:00 p.m., and 7:00 p.m.) in the 100 square foot multipurpose room of the center. Classes will be offered three days each week. The max enrollment per program is 16 participants. The instructor charges $60 per class. You also need to purchase the following additional equipment: 5 heights variable platform package ($300), 4 monster truck tires ($50 each), 4 ropes ($25 each), 8 heavy bags ($30 each), 8 speed bags ($15 each). The Director has an internal rental fee of 25 cents per square foot per hour for any class because the activity takes space off line for regular members. Additionally, to market new programs she has established a rate of $1.50 per participant per class for marketing expenses.

  1. What are the overall costs for the program? Provide amounts by category and calculate the total expenses for the program.
  2. What are projected revenues at full participation (16 people) in each class with the following percentage of members: 50%, 25%, 100%
  3. What is the projected profit OR loss for EAGLE WARRIOR based on each scenario in question #2?
  4. Do you recommend the program or not? Draft a brief memo to your Director with your findings and recommendations.

COMPLETE YOUR WORK IN A SEPARATE DOCUMENT AND UPLOAD AS AN ATTACHMENT!

SHOW YOUR WORK FOR ALL CALCULATIONS!

SUBMIT A MEMO THAT SUMMARIZES FINDINGS AND RECOMMENDATIONS!

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EAGLES SOAR FITNESS – TAKING YOUR FITNESS TO NEW HEIGHTS
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