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CVP And Break-Even Analysis Paper and Presentation Andrew Sanchez ACC 561 February 27, 2012 Melinda Gregg Introduction Snap Fitness, a Minnesota business based franchise offers franchise opportunities. With the people belonging to the different fitness, health clubs, and gyms the percentage has doubled over the last 20- plus years. However, the opportunity has an initial start up fee in which range from $60,000 to $184,000. Whereas, fitness is growing more individuals taking advantage of the health and fitness industry. Seems like the older Baby Boomers are taking advantage of as one call eternal youth. With the use of regular and steady exercise health fitness users are realizing that by exercising can length one life with better health. More fitness centers are staying open 24 hours giving individuals the chance to improve ones health. Although the health clubs are known to be recession proof economically, over the last 10-plus years, the annual growth as grown by an average of 8% around the health care industry. To start a fitness center one would need the following A grand opening market, franchise fees, deposits for the rent, utilities, and improvements on the leased property, and trainers for training. Per Kimmel (2009) the break-even point is the level of activity where revenue equals total fixed costs and total variable costs. A Snap Fitness franchise will incur fixed operating costs of $4,000 and $2,000 on estimation to lease fitness equipment. An article describes the layout about Snap Fitness stating that 300 members would require reaching the goal of the break even point according to Snap Fitness web CVP and Break-Even Analysis Paper and Presentation site. The cost-volume-profit will assist Snap Fitness in providing the changes of the cost and volume with the business profits. The analysis with the

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