Each facility will cost 2000000 to establish what is the


1. Which areas are most likely to have people With the disposable income necessary to be able to afford a gym membership? list the top 10 areas with their average household incomes in order from highest income to lowest income.

2. In which five areas do you think ik hew pm might be most competitive? Explain your answer using information Irons thit reports.

3. In which five- areas might you place a women only gym?

4. In which five areas might you place a gym with aquatic facilities?

5. List the top five areas where mole might be more Utley io go to the gym if _a friend accompanied them.

6. in which areas are women most Interested us obtaining a gym membership? List the top five and explain why you chose them.

7. In which areas are men most interested in obtaining a gyrn membership? List the top live and explain why you chose them.
A. 1,411the thttel0C4 GOO yOU think will best frar Pennington Fitness $latr whether the Byrn you open in each location might be urviws. or women only and whether it may provide aquatic facilities or not. Explain your choices with reference to the data in the reports.

9. Rank these locations in the order in which you will open them. Exc./km why you have chosen to roil them out in this order.

10. What introductory offer could you make to people who are more li Setif to join a gym with a friend than on their own?

11. You will charge 5990 per year for a gym membership. Assuming that you persuade OS% of the people in each area with an existing gym membership and 0.1%01 the remaining people to join Mut gym, how much annual revenue will you generate?

12. Each facility will cost $2.000.000 to establish. What is the total investment required by Pennington Fitness?

13. If annual revenue remains the same each the investment?

14. If Pennington Fitness has an ROI goal of 50% ($3.000.00D) how many years will it take to athes that?

15. If you were the owner of Pennington Fitness,would you invest in this opportunity

Solution Preview :

Prepared by a verified Expert
Financial Accounting: Each facility will cost 2000000 to establish what is the
Reference No:- TGS0652062

Now Priced at $40 (50% Discount)

Recommended (90%)

Rated (4.3/5)