Providing 5 Examples of Variable Cost for a Fitness Center
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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. This initial investment covers the following pre-opening costs: franchise fee, grand opening marketing, leasehold improvements, utility/rent deposits, and training.
Question:
Provide five examples of variable costs for a fitness center.
- List five variable costs and describe why they are variable.
- How do they vary with volume?
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Solution Summary
The five examples are laid out in bullet-point form in 368 words with 3 references.
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Variable costs are constant on a per unit basis and change in total as the activity level changes.
In a fitness center we are looking at the costs which would change as the activity level changes. Each variable cost would have its own activity and the cost would be variable as that activity changes. Some of the variable costs would be
1. Cost of products sold in the fitness center such as exercise balls, yoga mats, sports drinks, supplements, exercise clothing2. As the number of items sold change, the cost would change and ...
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