Chapter III

TECHNICAL ASPECT

This chapter aims to discuss the process of providing dance work-shops

and rental services for dance practices. Specifically, its service description,

business processes, business location, facility layout, utilities and logistics

management are considered in order for the service business to operate and

provide the services mentioned earlier.

Service Description

The BAKYARD Dance Studio will provide a place for learning and

enhancement of dancing skills. The studio will offer room rentals, inclusive of

equipment and facilities for the users’ convenience. Dance workshops for Hip-

Hop, Contemporary, Ballroom, Folk Dance as well as recreational activities such

as Zumba will also be offered. In order to utilize the dancing skills of local

choreographers around City of Batac or Ilocos Norte as a whole, referrals

through membership will also be available for them.

Service offerings:

 Rental services

 Dance Workshops:

 Hip-Hop

 Ballroom

 Contemporary

 Jazz
  Folk Dance

Characteristics of the Service

The proposed project is the establishment of dance studio that will provide

rental services and workshops to dancers and aspiring dancers from ages 10

and above. The BAKYARD Dance Studio is a standard and well-equipped dance

studio with state of the art facility in all forms of dance class and choreography.

The proposed business is a client-focused and result driven dance class

business that will provide great service and experience at an affordable fee that

won’t in any way put a hole in the pocket of our clients.

The BAKYARD Dance Studio will offer standard and professional dance

training and other dance related services in a highly secured and conducive

learning environment to all our customers. We will ensure that we work hard to

meet and surpass all customers’ expectations as it relates to their goals of

enrolling in our dance studio or engaging our services.

Uses of the Services

It has been the observation of the proponents that most of the people in

the City of Batac or Ilocos Norte as a whole has been conducting annual

presentations of different kinds of dances. Also, students from different levels

and schools are born with the natural talent of dancing. In order for these

aspirants and dancers to develop that hidden talent inside of them and further

excel in such field, there are rental services and workshops that will be offered

just for them. The rental services that the proposed business offers will provide a
suitable venue to have their rehearsals and enhance their talents and skills in

dancing. The dance workshops that the business will offer can help our

customers develop the fundamentals of dance and its proper technique, and also

promotes poise, harnesses passion and encourage performance and healthy

lifestyle.

Service Process

Rental services

The first step for rental services is the reservation of the studio. In here, the

clients will be able to choose between studio 1 and studio 2. If the clients agree

and accept the service, they will go on to the next step which is the completion of

admission form. This will indicate the terms and conditions of the service such as

the time reserved and the rental fee to be paid. Next is the accommodation

process wherein the clients only have to present the admission form they filled

out and proceed to the reserved studio. The costumers will pay after using the

studio. The rental process is illustrated below.

Reservation

Completion of Admission form

Accommodation
 Payment

Figure 16. Rental Process

Dance Workshops

In order to enroll in our dance workshop, the clients have to inquire either in

the office or in our social media accounts. Enrolment is next which implies that

the said customer is already a student of the workshop. After the enrolment, the

student will now undergo dance workshop under a professional choreographer.

After some time of undergoing the workshop, the student is now ready for the

recital which will be the last process of the said service.

Illustrated below is the process of enrolling in dance workshop.

Inquiries

Enrolment

Dance workshop

Recital

Figure 17. Dance workshop process

Service Equipment, Furniture, and Supplies Requirements

The basic requirements for a dance studio include the mirror required for the

wall of the studio, the sound system, the smooth vinyl floor, furniture, computer

set, flat screen TV and others.

Dance Studio equipment

Generally, a dance studio is furnished with a smooth floor covering and in

some cases it is furnished with a hardwood floor especially for tap dancing class.

The smooth vinyl floor covering in dance studios which is also known as a

performance surface and commonly called Marley, is usually not attached

permanently to the underlying floor and can be removed and transported to

performance venues when the need arises. It also include a barre, which can be

either fixed to the wall or be a detached move-able device that is around waist

height and used as a means of support. As music is a vital part of dance, virtually

all dance studios have a sound system for playing music. The dance studio will

also be surrounded with mirror as it will help the dancers to see how they move

and watch how they dance.

Table 17. Canvass of dance studio equipment and materials

Description Alternative 1 Unit Alternative 2 Unit

Cost Cost

Vinyl floor Lazada 23.67 Kambal Hardware 33

Barre OLX 1 500 Kambal Hardware 2 150

Mirror Wall Custom Made 4 000 Custom Made 5 000

 Speakers Robinsons 2 850 KServico 4 500

Amplifier Appliances 1 499 KServico 2 100

Air Conditioner OLX 13 499 Robinsons Appliance 31 395

Wall Clock Lazada 199 Novo 325

New India

Table 18.Chosen Dance Studio equipment and materials

Descriptions Unit Store Unit Cost Total Cost

Vinyl floor 68 Lazada 23.67 1 609.56

Barre 2 OLX 1500 3 000

Mirror Wall 2 Custom Made 4000 8 000

Speakers 2 Robinsons 2 850 5 700

Amplifier 2 Appliances 1 499 2 998

Air Conditioner 4 OLX 13 499 53 996

Wall Clock 1 Lazada 199 199

New India

Total 75 502.56

Amplifier

Speakers

Flat screen TV

Air conditioner Computer Set

 Barre

Mirror wall

Wall Clock Vinyl floor

Figure 18. Dance Studio equipment and materials

Office Furniture and equipment

Furniture will be displayed on the waiting area and in the office. Needed

furniture for the service are detailed as follows:

Table 19. Canvass of furniture and fixtures and equipment

Description Alternative 1 Unit Alternative 2 Unit

Cost Cost

Computer Set Lazada 11 800 Infineon 12 470

Wall Clock
 Flat Screen TV Robinsons 5 699 Lazada 9450

(32”) Appliances 4 800 Silicon Valley 6300

Printer Octagon 14 108 Addessa 14500

Sofa Set Hyper 2 899 Lazada 3798

Office Table K Servico 699 K Servico 1299

Office Chair Lazada 12 409 OLX 7800

Locker Lazada 4 600

Reception Table Custom Made

Table 21. Chosen furnitures and fixtures and equipment

Descriptions Supplier Unit Unit Cost Total Cost

Computer Set Lazada 2 11 800 23 600

Flat Screen TV Robinsons 1 5 699 5 699

(32”) Appliances 1 4 800 4 800

Printer Octagon 1 14 108 14 108

Sofa Set Hyper 1 2 899 2 899

Office Table K Servico 1 699 699

Office Chair Lazada 1 12 409 12 409

Locker Lazada 1 4 600 4 600

Reception Table Custom Made

Total 68 814
 Sofa Set

Cabinet locker Office chair

Office table

Reception table
Figure 19. Dance Furniture and fixtures

Labor Requirements

In dance workshop, professional dance instructors will be hired to teach the

dancers. Additionally, a licensed Zumba instructor will be hired for the Zumba

sessions. The studio will have one general manager who will be in-charge for

the overall management of the studio such as the supervision of the staff and

coordination of the activities. There will also be a front desk officer who will be

assigned and is responsible for accommodating the customers. One security

guard will be hired to secure the whole area and will also help the customers in

parking their car. And lastly, utility personnel to keep the whole studio clean and

organize all the time. The manpower required for operating the studio with their

salary is as follows:
Table 21. Human Resource details

No. of *Monthly **Annual

Description Rate per day
personnel salary Salary

Studio Administrator 1 480 11 520 138 720

Zumba Instructor 1 420 ***1680 ****20160

Front Desk Officer 1 375 9 000 108 375

Security personnel 1 340 8 160 98 260

Utility personnel 1 310 7 440 89 590

Total 5 1 925 37 800 449105

*Monthly salary of each personnel is obtained by multiplying the rate per day

to 24 (total number of days open per month)

**Annual salary is computed by multiplying the rate per day to 289 total

number of operating days a year.

***Monthly salary of zumba instructors are obtained by multiplying the rate per

day to 4 days only (Dance instructors will be working only for one day a week)

**** Annual salary of zumba instructors are obtained by multiplying the rate

per day to 48 days.

Schedule of Days in Operation

The table below shows the total number of holidays and total number of

Sundays in a year. The total number of operating days is computed using the

following formula:

Total number of operating days = Number of days in a year – Total holidays and

Sundays

= 365 – (24+52)

= 289

Table 22. Number of total holidays and Sundays

Holidays Date Number of days

New Year’s day January 1 1

Chinese New Year January 8 1

EDSA Revolution Anniversary February 25 1

Maundy Thursday * 1

Good Friday * 1

Holy Saturday * 1

Araw ng Kagitingan April 9 1

Empanada Festival April 21 1

Labor Day May 1 1

Independence Day June 12 1

 Farmers Fesival June 19 1

Rizal day June 24 1

Eid’l Fitr * 1

Ninoy Aquino Day August 21 1

National Heroes day August 30 1

Aglipay Day September 24 1

Eid’l Adha * 1

All Saint’s day November 1 1

All Soul’s day November 2 1

Bonifacio day November 30 1

Christmas day December 25 1

Rizal’s Death Anniversary December 30 1

Last day of the year December 31 1

Additional special non-working * 1

day

Total 24

Note: *Movable date

Service Schedule

The schedule of the business is important for the customers. To

accommodate the customers, the studio will be open from 8:00 AM to 6:00 PM

from Monday to Saturday.

Table 23. Schedule of Dance Workshop from Mid-April to Mid-June

Time Monday Tuesday Wednesday Thursday Friday Saturday

Hip Hop Contemporary Hip Hop

Hip Hop Folkdance Ballroom
Beginner Beginner Intermediate
8:30- Beginner Beginner (Dance
(Dance (Dance And
10:30 (Dance (Dance Tutorial)
Tutorial) Tutorial) Advanced
Tutorial) Tutorial)
(Dance

Tutorial)

Hip Hop

Hip Hop Folkdance Hip Hop Contemporary Intermediate

10:30- Ballroom
Beginner Beginner Beginner Beginner And
11:30 (Recital)
(Recital) (Recital) (Recital) (Recital) Advanced

(Recital)

Folkdance Jazz Contemporary

Hip Hop Hip Hop Hip Hop
Intermediate Intermediate Intermediate
1:00- Intermediate Intermediate Advanced
and And Advanced and Advanced
2:30 (Dance (Dance (Dance
Advanced (Dance (Dance
Tutorial) Tutorial) Tutorial)
(Dance Tutorial) Tutorial)

Tutorial)

Folkdance
Jazz Contemporary
Intermediate Hip Hop Hip Hop
Hip Hop Intermediate Intermediate
2:30- and Intermediate Advanced
Intermediate And Advanced and Advanced
4:00 Advanced (Recital) (Recital)
(Recital) (Recital) (Recital)
(Recital)
Quality Control Procedure

A solid business structure will be built by the The BAKYARD dance studio

that can support the growth of the business. The proponents will ensure hiring

competent people who can help them build the business. The operations

manager will be responsible for providing direction for the studio. The studio

administrator will be responsible for overseeing the smooth running of Human

Resource and administrative activities of the proposed business. The proposed

business will hire professional dance instructors to ensure the quality of the

dance workshops. Qualifications for the customer service executive should be

met by the employee to be able to be part of strong manpower of the business.

The security and utility personnel should be screened thoroughly to be qualified.

The studio will be well-equipped, well-ventilated and has spacious waiting

area for the customers. Proper maintenance of the facilities like the changing

room, restrooms and storage area will be observed.

Waste Disposal

In order to maintain cleanliness and orderliness of the studio, the proponents

see to it that the business observed the strict compliance with regard to waste

disposal regulation.

There would be a separate trash can for the biodegradable and non-

biodegradable all over the studio. Regular disposal of the garbage will be

observed as well as the regular maintenance of the utility personnel.

Table 24. Canvass of cleaning supplies

Unit cost (in Unit cost (in

Description Alternative 1 Alternative 2
pesos) pesos)

Broom Public Market 120 Robinsons Supermarket 150

Dust pan Public Market 80 Novo 139

Mop Novo 350 ME 399.75

Toiletries Puregold 325 Robinsons Supermarket 325

Toilet cleaner Puregold 72 Robinsons Supermarket 85

Trash bins ME 135 Puregold 209

Table 25. Chosen cleaning supplies

Cost Total cost

Description Supplier Unit
(in pesos) (in pesos)

Broom Public Market 1 120 120

Dust pan Public Market 1 80 80

Mop Novo 1 350 350

Toiletries Puregold 1 325 325

Toilet cleaner Puregold 1 72 72

Trash bins ME 2 135 270

Total 7 1,217

Mop

Broom
Dustpan
 Toilet Tissues Toilet cleaner Trash bin

Figure 20. Maintenance and Cleaning Supplies

Business Location

The location plays a vital part of the business. It is one of the major keys to

successful operations and overall growth.

The proponents consider first, the accessibility of the location. The location

must be easily accessible for the customers with the safety precautions of the

business. Second is the spacious area for the operations and for the equipment.

The location must have ample space and should not be congested for the

convenience of the customers. And lastly is the competition. A business’s

location can affect the competition it faces from other businesses that offer the

same service. But since the proposed business is said to be the first to establish

in the target area, competition won’t arise.

The Future Site

The studio will be located along Barangay 8 Acosta, City of Batac which is

almost at the heart of the City. The site is located along Marcos Avenue, beside

of Wendy’s Balloon. The photo of the future site is shown below.

Figure 21. The Future Site.

Reasons for choosing the site

The proponents choose the said location because it is accessible to the

public. It would be also a great place to start the business since it is surrounded

by business establishments and highly populated.

Vicinity Map

The figure below shows the location of the studio. The business site is located

at the center of the city which is a great place to start the business.
 Figure 22. Vicinity Map

Dance Studio Layout

The floor plan for the proposed project is shown below. It is divided into four

large areas. There are two studios that are the same in size, 9x10, which is the

ideal size of a studio, and the other are is divided into sub-rooms which are: the

two changing rooms; the office; and the storage. Lastly, the reception area is

where the receiving area and receptionist table are placed.

 Figure 23. The Floor Plan

BILL OF QUANTITIES

Item No. Description Quantity Unit Unit Price Amount

(Pesos) (Pesos)

I Earthworks 15 cu.m 300 4,500.00

II Reinforced Concrete 42 cu.m 9,578.26 402,286.92

Works

III. Masonry and Plastering 13 sq. m 2,914.97 37,894.61

Works

IV. Form Works 1 Lot 50,000.00 50,000.00

 V. Roof Framing Works 1 Lot 150,000.00 150,000.00

VI. Roofing Works 1 Lot 75,000.00 75,000.00

VII. Ceiling Works 132 sq. m 362.01 47,785.32

VIII. Mill Works: 1 Lot 120,000.00 120,000.00

(Fabrication, Delivery,

Installation)

IX Painting Works 1 Lot 100,000.00 100,000.00

X Tile Works 1 Lot 150,000.00 150,000.00

XI Plumbing Works 1 Lot 150,000.00 150,000.00

XII Electrical Works 1 Lot 100,000.00 100,000.00

TOTAL AMOUNT IN FIGURES: 1,387,466.85

Office supplies

The supplies for the office are shown below.

Table 26. Canvass of office supplies

Unit cost Unit cost

Description Alternative 1 Alternative 2
(in pesos) (in pesos)

Printer ink Expressions 425 Nat’l Bookstore 429.99

Salary slip Expressions 5.75 Nat’l Bookstore 6

Pencil Expressions 54.25 Nat’l Bookstore 62.75

Pen Expressions 144 Nat’l Bookstore 203

Bond Paper rim Expressions 135 Nat’l Bookstore 160

Stapler set Expressions 128 Nat’l Bookstore 195

Marker Expressions 45 Nat’l Bookstore 45.50

Receipt Expressions 43.50 Nat’l Bookstore 44.75

 Folders Expressions 4 Nat’l Bookstore 5

Calculator Expressions 79 Nat’l Bookstore 234.75

Filer Expressions 89 Nat’l Bookstore 90.75

Corkboard Expressions 149 Nat’l Bookstore 250

Cashbox Expressions 800 Nat’l Bookstore 999

Record book Expressions 129 Nat’l Bookstore 130

Table 27. Chosen office supplies

Cost Total cost

Description Supplier Unit
(in pesos) (in pesos)

Printer ink Expressions 1 425 425

Salary slip Expressions 3 5.75 17.25

Pencil Expressions 1 54.25 54.25

Pen Expressions 1 144 144

Bond Paper rim Expressions 1 135 135

Stapler set Expressions 2 128 256

Marker Expressions 2 45 90

Receipt Expressions 3 43.50 130.50

Folders Expressions 20 4 80

Calculator Expressions 2 79 158

Filer Expressions 2 89 178

Corkboard Expressions 1 149 149

Cashbox Expressions 1 800 800

Record book Expressions 1 129 129

Total 2,746
Utilities

Basic utilities such as electricity and water are required for the dance studio to

operate. The following computations are estimates and are based on assumed

data. Results are expected to vary from the actual billings.

The formulas and rate per kilowatt hour used for the computation of electricity

consumption per unit were taken from the descriptions of the unit and from the

INEC official website. The formula used is as follows:

For all the appliances:

Cost per hour=Rate ×(appliance wattage / 1000)

The cost of the electricity for each appliance was computed and is

summarized in the following table:

Table 28. Cost of electricity

UNIT TOTAL COST

HOURS *RATE **ANNUAL
APPLIANCE S WATTAGE COST/ PER
CONSUMED /KWH COST
USED HR DAY

Air conditioner 4 900 10 8.277 29.80 297.97 85 815.94

Computer Set 2 650 8 8.277 10.76 86.08 24 791.27

Speakers 4 600 8 8.277 19.86 158.92 45 768.50

Media Player 2 90 8 8.277 1.49 11.92 3 432.64

Amplifier 2 600 8 8.277 9.93 79.46 22 884.25

Television 1 45 9 8.277 .37 3.35 965.43

Fluorescent 40 9 9 8.277 2.98 26.82 7 723.43

TOTAL 55 2 894 60 57.999 75.20 664.52 191 381.46

 *The rate per kilowatt hour is obtained from the official website of Meralco.

**Annual cost is computed by cost per day multiplied to total operating days,

289.

The computation of water consumption per month is based on the

consumption rate per cubic meter which is obtained from the main office which is

Php 30/m3. The average water consumption of the services areas is 22.67 m 3.

Thus the computation of water charge for a month would be:

Water Charge = Consumption rate x Cubic meter consumption

= 24.05 x 22.67

= 545.21

Computation of utilities expense a year is summarized in the table below.

Differences of minimal amounts are due to rounding off. Internet connection

would seldom be used therefore the proponents have assumed to avail the latest

offer of Philippine Long Distance and Telecommunication Company, a wide-

known internet service provider, which has the lowest price of Php 699.00 per

month. The dance studio will operate 6 days a week and a total of 24 days a

month.
Table 29. Utilities expense

Description Monthly Cost (in pesos) *Annual Cost (in pesos)

Electricity 15948.46 191 381.46

Water 545.21 6,542.52

Internet 699.00 8,388.00

TOTAL 12,197.78 206 261.98

*Monthly cost multiply to 12 months is equal to annual cost

Depreciation Expense

The proponents used the straight line method to determine the depreciation of

equipment and furniture. The depreciation of an equipment or furniture is

calculated as indicated below:

Acqsuisition cost − Salvage value

Annual Depreciation =
Estimated useful life

Table 30. Depreciation expense details

Total Cost Useful life Annual Depreciation

Description
(in pesos) (in years)

Service Equipment 75 502.56 10 7550.256

Office Furniture and Fixtures 68 814 15 4587.6

Building 1 387 466.85 25 35498.674

Total 1531783.41 47 636.53

Service Cost

Service cost simply means the cost of providing the said service to the

market. Service cost of the studio is composed of the benefits that will be

received by the employees and their compensation that was already illustrated in

Table 21 ( Human Resource details).

Employee Contribution

A business success depends on its employees’ performance; poor

performance is detrimental to your company’s success. Creating a well-rounded

approach to managing and coaching your work force requires the expertise of a

human resources leader and the support of your company’s executive

leadership. The BAKYARD Dance Studio values their employees as much as

give importance to their clients. And in order for an employee to work hard, the

partners decided to give contributions aside from the employee’s reasonable

compensation. The table below shows the contribution that the partners will

provide for the employees.

Table 31. List of contribution

SSS Pag-IBIG Total Annual

Number of Philhealth
Description (in (in (in Contribution
employees (in pesos)
pesos) pesos) pesos) (in pesos)

Studio Administrator 1 847.20 137.50 100 1,084.70 13,016.40

Zumba Instructor 1 736.70 125 100 961.70 1,923.40

Front Desk Officer 1 663.00 112.50 100 875.50 10,506

Security personnel 1 589.30 100 100 789.30 9,471.60

 Utility personnel 1 552.50 100 100 752.50 9,030

Total 5 3 388.70 585 500 4 463.7 43 947.4

Employee Benefits

One of the most important components of running a successful business is

keeping employees happy and providing them with enough incentive to maximize

their productivity. It is important to maintain employee benefits as a means of

loyalty and talent management. The proposed business decided to give benefits

to its loyal and hardworking personnel. The table summarizes the said benefits to

be provided.

Table 32. List of employee benefits

Description Number of employee 13th month pay

Studio Administrator 1 11,520

Zumba Instructor 1 1 680

Front Desk Officer 1 9,000

Security personnel 1 8,160

Utility personnel 1 7,440

Total 5 37800
Total Annual Cost

Illustrated below is the total cost incurred by the studio for the whole year.

Table 33. Annual expenses details

Cost Annual Cost

Salaries/Compensation 449105

Depreciation expense 47 636.53

Utilities expense 206 261.98

SSS, Philhealth and Pag-IBIG Contribution 43 947.4

Employee benefits 37800

Total 784750.91

Allocation of cost

The cost is allocated based on the floor area covered by the office (14.58 sq.

m) out of the total area of the business (372.30 sq.m). The remaining 357.72

sq.m of the total area was occupied by the activities related to the operation. The

rate was applied to utilities expense and depreciation expense on leasehold

improvement only.

Table 34. Allocation of cost

Description Administrative expense Operating expense

Salaries 138,720.00 310385

Depreciation 1 865.54 45 770.98

Utilities 8 077.58 198, 183.4

SSS,Philhealth &Pag-IBIG Contribution 13,016.40 30 931

Employee Benefits 11,520 26280

 Total 173 199.52 611550.38

Service Price

Hourly service fee

The computation of the cost per hour per rental is based on all cost related to

the operation of the business.

Table 35. Computation of annual costs for dance rental

Description Amount

Salaries 290 225

Depreciation 39227.52

Utilities 170067.42

SSS,Philhealth &Pag-IBIG Contribution 29 007.6

Employee Benefits 24600

Total 553127.54

𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑐𝑜𝑠𝑡/𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑑𝑎𝑦𝑠

Cost per hour per rental = 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 ℎ𝑜𝑢𝑟𝑠

46093.97/24
= 10 ℎ𝑜𝑢𝑟𝑠

= 192.06

Rental fee per hour = 300

Mark-up = 𝑅𝑒𝑛𝑡𝑎𝑙 𝑓𝑒𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 −

𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 𝑝𝑒𝑟 𝑟𝑒𝑛𝑡𝑎𝑙

 = 300 −192.06

= 107.94

𝑀𝑎𝑟𝑘𝑢𝑝
Gross profit rate = 𝑅𝑒𝑛𝑡𝑎𝑙 𝑓𝑒𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟

107.94
=
300

= 35.98%

Service fee per Dance session

The computation of the cost per hour per rental is based on all cost related to

the operation of the business including the salaries, contributions, and 13 th month

pay of a dance instructor.

Table 36. Computation of annual costs of dance workshop

Description Amount

Salaries 60000

Depreciation 3801.05

Utilities 16 458.14

Total 80,259.19

𝑀𝑜𝑛𝑡ℎ𝑙𝑦
𝑠𝑒𝑠𝑠𝑖𝑜𝑛𝑠
Cost per session = ( 𝑡𝑜𝑡𝑎𝑙
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 ℎ𝑜𝑢𝑟𝑠
𝑥 ℎ𝑜𝑢𝑟𝑠/𝑠𝑒𝑠𝑠𝑖𝑜𝑛)/min. no. of students per class

40,129.6/24
= ( x3)/15
6 ℎ𝑜𝑢𝑟𝑠

= 55.74
Dance workshop fee per session = 100

Mark-up = 𝑊𝑜𝑟𝑘𝑠ℎ𝑜𝑝 𝑓𝑒𝑒 𝑝𝑒𝑟 𝑠𝑒𝑠𝑠𝑖𝑜𝑛 − 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 𝑝𝑒𝑟 𝑟𝑒𝑛𝑡𝑎𝑙

= 100-55.74

= 44.26

𝑀𝑎𝑟𝑘𝑢𝑝
Gross profit rate = 𝐷𝑎𝑛𝑐𝑒 𝑤𝑜𝑟𝑘𝑠ℎ𝑜𝑝 𝑓𝑒𝑒 𝑝𝑒𝑟 𝑠𝑒𝑠𝑠𝑖𝑜𝑛

44,26
=
100

= 44.26%

Service fee per zumba session

The computation of the cost per hour per rental is based on all cost related to

the operation of the business including the salaries, contributions, and 13 th month

pay of a zumba instructor.

Table 37. Computation of annual costs of zumba

Description Amount

Salaries 20 160

Depreciation 3801.05

Utilities 16 458.14

SSS,Philhealth &Pag-IBIG Contribution 1,923.40

Employee Benefits 10,080

Total 52,422.59
 𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑐𝑜𝑠𝑡
Zumba fee per session = / min. no. of students per class
𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑑𝑎𝑦𝑠

4368.55
= /15
4

= 72.81

Fee = 100

Mark-up = 𝑊𝑜𝑟𝑘𝑠ℎ𝑜𝑝 𝑓𝑒𝑒 𝑝𝑒𝑟 𝑠𝑒𝑠𝑠𝑖𝑜𝑛 − 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 𝑝𝑒𝑟 𝑟𝑒𝑛𝑡𝑎𝑙

= 100– 72.81

= 27.19

𝑀𝑎𝑟𝑘𝑢𝑝
Gross profit rate = 𝐷𝑎𝑛𝑐𝑒 𝑤𝑜𝑟𝑘𝑠ℎ𝑜𝑝 𝑓𝑒𝑒 𝑝𝑒𝑟 𝑠𝑒𝑠𝑠𝑖𝑜𝑛

27.19
=
100

= 27.19%