Yoga Life, Nirvana, profitability analysis, course optimization, independent professor, marginal result, variable cost, production constraints
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Abstract
Analysis of the profitability of Yoga Life's new Nirvana offer when courses are conducted by Mrs. Mendès or an independent professor.
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[...] This may be difficult to achieve, given the estimated average staff (only 5 participants per Nirvana Zen according to the survey). On the other hand, the training sessions Little Nirvana and Nirvana are more easily profitable: as soon as 5 to 7 participants, they allow to reach the desired margins. This suggests that recourse to an independent professor is more relevant for short internships, where the profitability threshold is more easily reached, and less suited to long formats, which require a strong participation to cover the high fixed costs. [...]
[...] 90,00 ? 165,00 ? Price excluding tax per participant 40,00 ? 75,00 ? 137,50 ? Excluding tax cost of the tea break per participant 1,00 ? 2,00 ? 4,00 ? MCV per participant 39,00 ? 73,00 ? 133,50 ? Next, we will calculate the margin on variable cost per stage for each category: Little Nirvana Nirvana Nirvana Zen Average number of participants per stage 10 12 5 Cost of renting a room 100,00 ? MCV unitary 390,00 ? 876,00 ? [...]
[...] Development of a new offer - The Yoga Life case Case Study: Yoga Life - First part In this first part, we will evaluate the profitability of the new offer 'Nirvana' when the courses are ensured by Mrs. Mendès herself. The objective is to determine the optimal combination of courses considering the time constraint. We will then analyze the financial result of this offer. 1. Production constraints The main production constraint lies in the limited availability of Mrs. Mendès, who only wishes to devote [...]
[...] So, there are 10 - 2.5 = 7.5 weekends left. We program the Nirvanas first, then the Little Nirvanas. The number of stages programmed is: - Little Nirvana: 1+5 = 6 - Nirvana: 1+5 = 6 - Nirvana Zen = 1+0 = 1 3. Calculation of the marginal result from this offer The marginal result from this offer is equal to the sum of the margins on variable cost: Little Nirvana Nirvana Nirvana Zen Total Nb Stages programmed 6 6 1 MCV unitary 390,00 ? 876,00 ? [...]
[...] Relevance of using an external independent The independent professor bills 50 namely : - Little Nirvana = 150 ? - Nirvana = 300 ? - Nirvana Zen (12 = 600 ? This increases fixed costs. It must be checked if the rentability remains acceptable with these costs. 5. Target Profit Margin - Little Nirvana Target margin 0.6 × 40n = 1n + 150 24n = n + 150 23n = 150 n ? 6.52 ? 7 participants Target 0.8 × 40n = 1n + 150 32n = n + 150 31n = 150 n ? [...]
