Estimate the current profit figures of SLS from December 2012 to May 2013 to evaluate the viability of the business. Examine SLS’s break-even point for May 2013. Estimate the profitability of conducting each type of yoga class – i.e. group classes, private classes, and “salt cave” classes.

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As yoga grew in popularity in Singapore, there were many new yoga studios set up in attempts to tap into this growing service industry. Space & Light Studios Pte Ltd was one of them. A small and medium enterprise set up in December 2012, it differentiated itself by offering yoga classes that emphasized on the optimal alignment of the body. This case study explores the entrepreneurial journey of the owners of Space & Light Studios and examines the viability of this yoga business utilizing Cost-Volume-Profit analysis – a management accounting tool.

http://www.spaceandlightyoga.com/about.php

Case Study Questions:

  1. Estimate the current profit figures of SLS from December 2012 to May 2013 to evaluate the viability of the business.
  2. Examine SLS’s break-even point for May 2013.
  3. Estimate the profitability of conducting each type of yoga class – i.e. group classes, private classes, and “salt cave” classes.
  4. Consider the implications of the analyses above for SLS.
  5. Conduct sensitivity analyses based on different scenarios of rental costs, fees paid to yoga teachers and pricing.
  6. Recommend a plan of action for the owners of SLS.

****one excel model plus 3 pages write up minimum three references

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