Western Athletic Club International (WACI) owns and operates a chain of fitness clubs and is interested...
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Western Athletic Club International (WACI) owns and operates a chain of fitness clubs and is interested in estimating the CLV for new memberships. Practically all of WACI's costs are fixed costs. Meaning that, when a member pays his or her monthly dues, there are no variable costs associated with that payment and all the revenues go toward covering the fixed costs of the business (facilities, salaries, equipment, etc.) WACI's monthly membership dues are $70 per person. The average member keeps his or her membership active for 26 months. In addition to membership, WACI also offers personal training services through a staff of independent athletic trainers. WACI and the trainer split the fees associated with personal training 50/50. Historically, 18% of members choose to use a personal trainer for, on average, 28 training sessions. Sessions with a personal trainer are priced at $50 each. What is the CLV of the personal training component for a member who chooses to hire a trainer? o dollars ($) Western Athletic Club International (WACI) owns and operates a chain of fitness clubs and is interested in estimating the CLV for new memberships. Practically all of WACI's costs are fixed costs. Meaning that, when a member pays his or her monthly dues, there are no variable costs associated with that payment and all the revenues go toward covering the fixed costs of the business (facilities, salaries, equipment, etc.) WACI's monthly membership dues are $70 per person. The average member keeps his or her membership active for 26 months. In addition to membership, WACI also offers personal training services through a staff of independent athletic trainers. WACI and the trainer split the fees associated with personal training 50/50. Historically, 18% of members choose to use a personal trainer for, on average, 28 training sessions. Sessions with a personal trainer are priced at $50 each. What is the CLV of the personal training component for a member who chooses to hire a trainer? o dollars ($)
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Answer rating: 100% (QA)
First lets calculate the revenue generated from personal training for each member who chooses to hi... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
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