The wellness business has undergone a rise in popularity over the past couple of years. This can be attributed to a worldwide focus on health, self-care, and holistic living. The pioneers of this movement are wellness centers which often include a combination of exercise, spa services, nutritional assistance and holistic treatments. However will it be profitable to develop and maintain a wellness center? Let’s go into the nitty-gritty of this company’s financial situation.
Revenue
Here’s the breakdown of the revenue items for the wellness center:
Cost of Goods Sold
Here’s the breakdown of the Cost of Goods Sold (COGS) for the wellness center:
Operating Expenses
Here’s the breakdown of the operating expenses for the wellness center:
Let’s calculate the net profit or loss for the wellness center:
Total Revenue: $38,000
Total Cost of Goods Sold (COGS): $5,450
Total Operating Expenses: $26,500
Net Profit or Loss = Total Revenue – (Total COGS + Total Operating Expenses)
Net Profit or Loss = $38,000 – ($5,450 + $26,500)
Net Profit or Loss = $38,000 – $31,950
Net Profit or Loss = $6,050
Based on the data provided, the wellness center has a net profit of $6,050 for the month.