Franchise Cvp and Break-Even Analysis for Team

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A prosperous fitness center less the complications of the big conglomerates can be an attractive franchise selection. In Minnesota is a franchise establishment, Snap Fitness center that allows consumers to join for a minimal fee. Snap Fitness center does not require a contract and is open all day and night. This franchise opportunity, depending on the associated fees can cost between $60,000 and $184,000. Team B will evaluate the fees and cost-volume-profit (CVP) analysis to make sensible decision on behalf of Snap Fitness center (Kimmel, Weygandt, & Kieso, 2009). CVP analysis The components the CVP analysis consists of sales, variable cost, contribution margin fixed cost, and net income. The company’s revenue stream demonstrates the variations of fees and capacity increases and decreases; the examination of this activity is CVP analysis. The CVP analysis provides information for the organization to plan according to the earnings. The organization needs to select the fees, promotion, location, and productivity methods to optimize profits. The CVP analysis provides the organization with data to make these decisions (Kimmel, Weygandt, & Kieso, 2009). The CVP income statement applies the information in a format used with staff. The CVP income statement organizes fees in categories such as variable cost, fixed cost, contribution margin, and net income (Kimmel, Weygandt, & Kieso, 2009). Break-even analysis The association of the CVP analysis is the movement of fixed and variable costs. The break-even point is what the movement is named after. The organization will understand if the sales volume continues the organization will experience a zero bottom line. The organization after this information is available will need to review the businesses approach. The formula for the CVP analysis is Sales + Variable Costs + Fixed Costs + Net Income (Kimmel, Weygandt,

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