Space and Light Studios- Yoga Business Viability check with sensitivity Analysis.

1. SPACE AND LIGHT
STUDIOS
(GROUP 06)
FGS/MBS/2022/045 MANOJ PEIRIS
FGS/MBS/2022/119 U. N. MADUSANKA
FGS/MBS/2022/081 ISHARA KUSALANI
KOLONNE
FGS/MBS/2022/083 B. R. YAPA
FGS/MBS/2022/052 A. K. SUNETH
UDAYANGA
FGS/MBS/2022/035 K. P. D. R. KALANI
FERNANDO

2. Introduction
Viability of the Business
(from December 2012 to
May 2013)
Break-Even Point of
Space & Light Studio in
May 2013
Profitability of
conducting each type of
yoga classes
The implications of the
analyses above for SLS.
Sensitivity analyses
Plan of action for the
owners of SLS.
CONTENT.

3. Lynn & Sumei Shum are experienced yoga instructors in Singapore and experienced
in Ashtanga Yoga.
In 2010 they join hands with “Verita” and start teaching “ Anusara” inspired Yoga
classes
Challenges
 Minimize the cost while maximizing profit
 Operation and pricing their Yoga classes
 Retain the Yoga Instructors
 Attracting new students
SPACE & LIGHT STUDIO

4. Viability of Business of Space & Light
Studio from December 2012 to May
2013
Work Sheet

5. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013
Profitbility of SLS
Total Revenue Less.Variable Cost Contribution
Less.Fixed Cost Profit

6. BREAK-EVEN POINT OF SPACE & LIGHT STUDIO IN MAY
2013

7. CALCULATION OF BREAK -EVEN POINT IN
UNITS
BREAK EVEN POINT = FIXED COST / CONTRIBUTION PER UNIT
= 15461 / 159.75
= 96.78
Contribution per unit = Selling price per unit – unit variable cost
= 221 – 61.25
= 159.75
Unit variable cost = TVC/total number of members
10965/179
61.25

8. Calculation of Break even point in Amount
Total revenue May 2013 – 25188
Total variable cost may 2013 – 10,965
Contribution to sales ratio = Sales – Variable cost X 100
Sales
=25188 – 10965 X 100
25188
= 56.46%
Break even point = Fixed cost / Contribution to sales ratio
15461
56.46%
= 27, 383
Revenue May 2913
Group
22,008.00
Private
2,340.00
Salt
840.00
Total
25,188.00

9. Work Sheet 3
Group (155) Private (18) Salt(6)
$ $ $
Revenue 22,008.00 2340.00 840.00
Salaries 9,300.00 1080.00 360.00
Salt Cave - 0.00 225.00
Total Variable Cost 9,300.00 1080.00 585.00
Contribution 12,708.00 1,260.00 255.00
Rent 10,026.62 1164.38 0.00
Security Deposit - 0.00 0.00
Shared Service (Facilitates
and Administration Cost)
3,030.73
351.96 117.32
Software 70.00 0.00 0.00
Suttle Bus (This Started in
April 2013) 606.15 70.39 23.46
Partition - 0.00 0.00
Total Fixed Cost 13,733.49 1586.73 140.78
Profit (1,025.49) (326.73) 114.22
PROFITABILITY OF CONDUCTING EACH TYPE OF YOGA CLASSES

10. IMPLICATIONS OF
THE ANALYSES
ABOVE FOR SLS.
• SLS is operating to yoga classes in
30%-40% capacity and they not
utilized in maximum capacity.
• SLS is attracting the good and
experience yoga instructors.
• SLS has a incomplete time slot in
training schedule.

11. Tuesday, February 2, 20XX
Sample Footer Text 11
SENSITIVITY
ANALYSIS
•DIFFERENT FLOOR RENTAL COSTS: CHANGES IN
RENT WILL SIGNIFICANTLY INFLUENCE GROSS
PROFITS; MEDIUM SENSITIVITY.
•DIFFERENT SALARIES TO YOGA TEACHERS
: LESS SENSITIVITY.
•DIFFERENT PRICING TO PACKAGES: INFLUENCES
THE GROSS PROFIT INTENSIVELY; HIGH
SENSITIVITY

12. SENSITIVITY ANALYSIS
•DIFFERENT FLOOR RENTAL COSTS
: CHANGES IN RENT WILL SIGNIFICANTLY INFLUENCE GROSS PROFITS
MEDIUM SENSITIVITY.
12

13. SENSITIVITY ANALYSIS
•DIFFERENT FEES PAID TO YOGA TEACHERS.
LESS SENSITIVITY.
13

14. SENSITIVITY ANALYSIS
•DIFFERENT REVENUES(PRICING): INFLUENCES THE GROSS PROFIT
INTENSIVELY
HIGH SENSITIVITY
14
89%
8% 3%
Revenue
Group Class Revenue Private class revenue Salt Cave Revenue
1048
18
12
Number of sessions
Group Class Revenue Private class revenue Salt Cave Revenue

15. 15
1. Low utilization of Recourses – Utilized on 30% to 40% - Rent Medium sensitivity and Spent $11,191 for rent. If
we can make it for $9000 we can earn a profit of $ 953.
To overcome the situation divide the total sq ft area to three units 900 sq.ft , 600sqft and 400 sq.ft. We can
rented this 400 sqft $5.89 per month ($2,356.00) and manage the yoga classes in 900 and 600 sq.ft .
2. Retention of Yoga Instructors – Payment Made to Instructors and Less sensitivity and presently pay $ 60 fixed
salary per class regardless of group salts reach and private.
We can reduce the nine Teachers to five and recruit another less experience instructor @35$.
Further since the salary is less sensitivity we can implement a Incentive aprox 5$
based on the No of students in the class.
3. Increase The revenue - High Sensitivity
 To attract new customers, propose a promotional tool to existing clients if the promote two new customers
will wave off one monthly fee.
 New Segment to cater the low aged groups, ex cross sell Teenagers and children for existing customers. Can
promote to Pregnant ladies. Elderly people.
 80% to 40% of the clientele is ladies and capture the men’s market promoting as a Wellness practice
 Conducting Visiting lectures to large corporate and conduct classes after working hours.
RECOMMEND A PLAN OF ACTION FOR THE OWNERS OF SLS.

16. 16
THANK YOU