Advance Management accounting and performance management - Essay Example

Besides, initiating a fitness club is a fun and financially paying business that assists people get and remain strong, healthy and fit. Owning such a business enables an individual own an artistic and resourceful business in a recession-resistant field. This business entails providing fitness services, which include individual training services, and BFIT rehab, which refers to a physical rehabilitation service. The club will also sell a range of nutritional, fitness and health products. These include the company’s own BFIT nutritionals at its stores that will be exclusive in the center (Curtis, 2003).

The facilities that must be present at Rollin Fitness Center include cardio training equipments like 50Kg Barbell Dumbbell set, magnum fitness flat and auto incline treadmill; strength equipments like BNRG Proto Whey 5Lbs, power rack and smith machine and bench package. Most gyms in Europe especially in UK charge £500 to £700 a month but to increase competitiveness, Rollin Fitness Center should charge £450 to £500 a month. Just as mentioned, the company intends to increase its competitive advantage and popularity by charging slightly lower than the normal costs for most gyms in UK.

Therefore, Rollin Fitness will be charging £450 - £500 in order to attain several clients and be competitive in the market field. However, some clients do not wish to be at the gym on a daily basis meaning that they cannot pay full monthly cost (Kirk, 2000). Therefore, the company needs to come up with weekly charges as well as daily charges, which should be done according to hours spent in the gym. It is very difficult to come up with per unit cost for a fitness club since the center offers more of service than goods (Jeff, 2004).

The best way to go about it is through coming up with an hourly cost statement for any person who visits the center for fitness services. Now that monthly cost is like £500, weekly cost will be; Now, to determine