Question
A fitness center tracks its costs for equipment, staff salaries, and utilities over five quarters. Quarter Memberships Equipment Cost Cost per Membership (Equipment) Staff Salaries
A fitness center tracks its costs for equipment, staff salaries, and utilities over five quarters.
| Quarter | Memberships | Equipment Cost | Cost per Membership (Equipment) | Staff Salaries | Cost per Membership (Salaries) | Utilities Cost | Cost per Membership (Utilities) |
|---|---|---|---|---|---|---|---|
| 1 | 300 | $15,000 | $9,000 | $3,000 | |||
| 2 | 600 | $15,000 | $12,000 | $6,000 | |||
| 3 | 150 | $15,000 | $6,000 | $1,500 | |||
| 4 | 450 | $15,000 | $10,500 | $4,500 | |||
| 5 | 750 | $15,000 | $15,000 | $7,500 |
Required: a. Determine the cost per membership for each cost. b. Classify each cost as fixed, variable, or mixed. c. Analyze how understanding these cost behaviors can aid in membership pricing. d. Discuss the implications of these costs for financial planning and sustainability. e. Recommend strategies to manage equipment, staff salaries, and utilities costs.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Accounting Information Systems
Authors: Marshall B. Romney, Paul J. Steinbart
12th edition
132552620, 978-0132552622
