Variable	Line Item	Amount
Fixed	Advertising (Ad Fee)	$ 300	per month
Fixed	Advertising (General)	$ 1,000	per month
Fixed	Cleaning	$ 1,500	per month
Variable	Credit Card Processing Fees	3%	of revenue collected
Fixed	Equipment Rental	$ 5,000	per month
Fixed	Franchise Fee	$ 549	per month
Fixed	Full Time Manager Salary	$ 42,000	annual
Fixed	Insurance	$ 300	per month
Variable	Membership Dues	$ 40.00	per month per member
Variable	Part Time Manager Wages *	$ 2.50	per month per member
Fixed	Rent	$ 4,750	per month
Fixed	Repairs and Maintenance	$ 350	per month
Fixed	Software (A.H.M)	$ 250	per month
Fixed	Software (Access Fee)	$ 249	per month
Fixed	Software (Training Suite)	$ 149	per month
Variable	Supplies	$ 1.00	per month per member
Fixed	Utilities	$ 2,250	per month

A)	Calculate the number of monthly members (monthly memberships) to Break Even.
	(show the total profit equation)
	Profit Equation:
	Break Even monthly memberships:
B)	How many monthly members are needed to earn an annual Target Profit of $80,000?
	Monthly memberships needed:
C)	What is the margin of safety in monthly members and monthly sales revenue?
	Margin of safety:

Additional Information
The fitness center is projected to have 700 members per month
All revenue collected (100%) is from credit cards
Payroll taxes (Social Security/Medicare) is an additional 7.65% of payroll
* The part time manager wages rate already includes Social Security and Medicare payroll taxes
Although some utilities are semi variable costs (mixed) in nature, treat all utility costs as fixed