5.2 Itemized Planned Expenditures
Planned expenditures for Power Hour Fitness would include a facility for the company, the equipment used for working out, massage tables and utilities, and the payroll for the personnel. These are the items that will have to be paid for when first starting the business and throughout the time the business is open and operating. The building purchased for the fitness center will cost $32.86 per square foot adding up to $492,852.20 for the total cost of the building.
Gym equipment needed for the facility will be purchased from the company Gym Starters. This company offers various packages for gym equipment. The chosen package for the gym costs $225,534 and is the package Gym Starters offers that consists of
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A total of eighteen workers will be hired for the operations of Power Hour fitness. This facility will need $295,924.80 to accommodate payroll expenses for the personnel for a year. There will be six front desk workers making $7.65 an hour. If worked the approximate 28 hours a week, Power Hour Fitness will pay $1,285.20 a week and $66,830.40 a year. Power Hour Fitness will hire four supervisors who will work approximately 24 hours a week making $12.00 an hour. The company will pay $1,152 a week and $59,904 a year to the supervisors. There will be four personal trainers for the company each making $17.00 an hour. Three of the trainers will work 20 hours a week and one will work 40 hours. The expenses for hiring the personal trainers will be $1,700 a week and $53,040 a year. Two massage therapists will be hired for the daily massages the company will offer and will each work approximately 20 hours a week making $19.88 an hour. The company will pay $795.20 a week and $41,350 a year to hire the massage therapists. Lastly, the Marketing Manager and Financial Manager will each work 40 hours a week and make $18.00 an hour. The managers will be paid $1,440 a week and $74,800 a …show more content…
Once word gets passed along and advertisements are at its peak, more people will begin to use Power Hour for their fitness needs. The target market is projected to stay the same or grow, as more people will want to stay fit or lose weight. This will help with the stability of the company as there is security the company will sell its services to customers. In the future, the company plans on having more fitness classes and personal trainers to meet the needs of its customers. Power Hour plans on hiring more full-time employees and adding an expansion to the facility. All of this will contribute to the income of the company.
Power Hour hopes to have its loan paid off as soon as possible allowing the company to become reliant on the income it makes. When the loan is paid off, the company will be able to stand alone and pay the payroll expenses, utilities expenses, and any other expenses necessary for the business. With the loan paid off, Power Hour will have projected revenue to outweigh the expenses allowing the company to prosper and be
The need for intrinsic rewards at the Fit Stop is moderate. It is a justifiable reward for some, but in most cases, is not the sole purpose that people are employed with The Fit Stop. The need for extrinsic rewards is much higher than the need for intrinsic rewards due to all of The Fit Stop’s employees being full-time. Compensation will play a role in The Fit Stop because of its long hours, need for some skilled workers, and because all of the employees are
facility. All of the gyms are up to date with the newest equipment and free weight.
Wilkerson Company is facing fierce competition in the water purification equipment business that could potentially cannibalize their sales. In matching the lower prices set by the competition, Wilkerson’s profits and pre-tax margins have declined as a result. Despite lowering the prices of pumps, which are Wilkerson’s major product line, the product’s gross margin has fallen under 20% - which is 15% below the company’s expectations. In light of these challenges, Wilkerson Company decided to examine their overhead costs.
The stipend is $5,000 for each participant each year, so the stipend increases by the County’s standard escalation rate of 3.5%, then it is prorated by 50% to $ 2,500 for the first year (Transition Year) when the benefits are paid only for the first six months. The cost of the first year is $ 12,500 and the on-going costs for the Operational Years will increase by the value of 3.5%. The stipend as a recurring cost will yield a benefit return for the department. Another significant aspect is the one-time payments of $10,000 for each of the 5 participants for retirement. Then the actual cost will be $50,000, which is a cost-benefit. The cost- benefit indicates that the department will be able to cover all its expenses and it will begin to make a profit
The business models of the two rapidly growing franchised gym chains vary from each other. Originated in US, Anytime Fitness is the largest health club chain in world as well as in Australia with more than 260 clubs located all over the different states and territories. Member fees and offers of each club are customized by owners under a guide from headquarter. It embraces a ‘Corporate Wellness’ section as part of business model to attract employees of companies as group customers. A theme social networking website is also provided to members to communicate about their health and workouts. As to its franchise model, an initial joining fee and a monthly flat fee are required and a variety of technical and decision-making supports are available for franchisees (Anytime Fitness 2014).
1. Hire hourly coaches to supplement our limited staff. 40 hours at going rate ($16) Total 640
the first thing that would need to be alteret is of course her roster. a staff will help her gain more machines and allow more customers to experience her treatments and services. once her staff grows in size she should then budget for adversite in areas where more target customers are. the company has grow very fast and can become even more if the right people are added. it is a business but if it remains the same the business will have no room to expand to its full potenial.
The Darby Company is re-evaluating its current production and distribution system in order to determine whether it is cost-effective or if a different approach should be considered. The company produces meters that measure the consumption of electrical power. Currently, they produce these meters are two locations – El Paso, Texas and San Bernardino, California. The San Bernardino plant is newer, and therefore the technology is more effective, meaning that their cost per unit is $10.00, while the El Paso plant produces at $10.50. However, the El Paso plant has a higher capacity at 30,000 to San Bernardino’s 20,000. Once manufactured, the meters are sent to one of three distribution centers – Ft. Worth, Texas, Santa Fe, New Mexico and Las Vegas. Due to the proximity of El Paso to Ft. Worth, they are only plant to ship to Ft. Worth. The costs associated with each shipment are described in detail in Appendix 2.2A. From these distribution centers, meters are shipped to one of nine customer zones. The Ft. Worth center services Dallas, San Antonio, Wichita and Kansas City, the Santa Fe center services Denver, Salt Lake City, and Phoenix, and the Las Vegas center ships to Los Angeles and San Diego.
Budgeting Assignment A company's budget serves as a guideline in planning and committing costs in order to meet tactical and strategic goals. Tactical goals such as providing budgetary costs for daily operations, and strategic objectives that include R&D, production, marketing, and distribution are all part of the budgeting process. Serving as a guideline rather than being set in stone, the budget is a snapshot of a manager's "best thinking at the time it is prepared." (Marshall, 2003, p.496)
Overhead based on direct labor includes the cost of the Product Development Support Center, interest expenses, and general and administrative expenses. The Product Development Support Center failed to account for hours spent on each product, which will not only complicate the product cost calculations, but also the calculation of capitalization expenses later on. The Development Support Center will be most used during the peak (i.e. most hours) time of development for each product, and hours worked will probably be the best way to divvy up the costs of the support center. The money invested in the company is being used on developing each product right now. I figured interest would best be divvied up by hours to attribute the interest expense to the product using the most of the investment. Similar to the reasons stated before general and administrative costs are going to be associated with the most prominent product, and that is best seen through hours. (Figure A)
Instead of trying to persuade customers to buy what the LA Fitness has already produced, the marketing department has decided to produce a product for families not just individuals. The corporation has decided to do this through research. Consumer needs and wants became the firm's primary focus. This consumer-orientated marke...
The marketing sector is highly competitive and with the increasing trends of entrepreneurship, employers are feeling increasingly pressured to be more inventive and generous with their benefits package which is why WTN has elected to include a Health Spending Account and a Fitness Subsidy Allowance for both our full-time and part-time employees, as well as
First off, when companies advertise they need to have a plan. How much is the company going to spend?
There have been many studies that show countless advantages and benefits from exercising everyday at the workplace. Exercise allows larger flexibility for a company as a whole because there is lower absenteeism and it improves production levels. Several companies found having a fitness facility for their employees offers a benefit package to get employees to exercise more. With a fitness center at work, programs have expanded because of the lower absenteeism and an increase of job productivity. Employees like to come to work because they can workout there for free and they don’t have an excuse not to workout.
utility workers. Determine (a) the number of workers and (b) the number of workstations on