Bounce Fitness is a premier provider of fitness and wellness in Australia. It is made up of four fitness centres. Head office is currently established in Cairns, Queensland. The other centres are in Brisbane, Sydney and Melbourne.
To complete this task, you are required to review theProfit and Loss Report of Bounce Fitness in Cairns.
Profit and Loss-Cairns
Analyze and review the information in the profit and loss report – then provide detailed answers to the questions in the following Budget Report Template:
BSBFIN501 Task 3 Budget Report Template.docx
· Completed Budget Report Template
Profit and Loss – Cairns Cairns Year 20X1 Year 20X2 Sales Casual Attendance 53,100 53,100 Memberships 241,000 241,000 Equipment and Clothing 29,000 29,000 Total Sales $ 323,100 $ 323,435 Direct Cost of Sales Equipment and Clothing 8,700 8,874 Total Cost of Sales $ 8,700 $ 8,874 Gross Margin $ 314,400 $ 314,561 Gross Margin % 97% 97% Operating Expenses Advertising 117,000 134,550 Bank Service Charges 6,000 6,000 Credit Card Fees 3,000 3,003 Insurances 12,000 12,000 Miscellaneous 2,400 2,402 Head Office Contribution – – Payroll 195,000 204,750 Team Building 15,500 17,050 Professional Fees 20,000 20,000 Rent or Lease 48,000 48,000 Subscription & Dues 3,000 3,000 Supplies 30,000 28,500 Taxes & Licenses 2,400 2,400 Utilities and Telephone 9,500 9,975 Equipment Leases 12,000 12,000 Maintenance 11,800 11,800 Total Operating Expenses $ 487,600 $ 515,431 Profit before Interest and Taxes (EBIT) $ (173,200) $ (200,870) Interest – – Corporate Taxes – – Net Profit (or Net Income) $ (173,200) $ (200,870) Budget Report Review BSBFIN501 Task 3 Budget PROFIT & LOSS REVIEW Review the Profit and Loss Report attached in your Assessment Task 3 Analyse and review the information – then provide detailed answers to the following Type or Section of Plan Profit and Loss Is the cost of sales worth keeping the lines open? Discuss the profit or loss this is causing and what recommendations you would make. . Review all of the figures – are the total calculations correct ? Identify any errors you can locate Has the increased cost in advertising had any impact on profit? Give details: Review the operating expenses and outline figures that have altered and in what way Overall, what is your opinion on the Net Profit/Loss final figures for the organisation. Answer this in your own words. 1 BSBFIN501 – Budget Report Template Capital College RTO: 41593 | CRICOS: 03537J | CAN: 606 797 611 | ABN: 16 606 797