• Does Sin-Yi SPA make money?

Abstract

Ms. Wang and Yuo jointly founded the Sin-Yi SPA in September, 2019, a store that mainly offered the services of facial care and body relaxation. This case describes the two people working together to invest and start a business, utilizing professional skills to stabilize customers, and selling skin care products to sustain income. They have started business for nearly half a year without monthly salary, and they keep revenue and expenses in a common account and only withdraw the exact amount of money when they are in need. With so much effort, is Sin-Yi SPA making money? This teaching case is an operation-level case. Using the information provided by Sin-Yi SPA, the researcher tries to teach students to calculate the gross profit margin of each service item in the beauty and body industry. Besides, the researcher also manages to calculate the required revenue for break-even point regarding hiring an assistant for Sin-Yi. What should they do to make more money? Should Sin-Yi SPA hire an assistant or an experienced technician to settle in?

Keywords: Sin-Yi SPA, Beauty and Body Industry, Income Statement, Break-even Point