Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $5.00 per person. To differentiate his gym and better serve his clients, Anthony provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $1.75 per person. Anthony employs three part-time instructors and pays them each $1,000 per month. He also pays himself a monthly salary of $4,000. Anthonys other monthly costs are $1,500 for rent, $1,250 for depreciation on his 30 bikes, and $1,800 in utilities and insurance. (a) What is Anthonys contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.)

Contribution margin

$Enter contribution margin in dollars per unit

per unit

(b) What is Anthonys contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.)

Contribution margin ratio

Enter contribution margin ratio in percentages

%

(c) Prepare Anthonys monthly contribution format income statement. Assume that he teaches 5,000 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

						Unit
Select an income statement item Total Fixed ExpensesDepreciation ExpenseFixed ExpensesRent ExpenseOperating IncomeContribution MarginInstructor Salaries ExpenseManagement Salary ExpenseSales RevenueVariable ExpensesUtilities & Insurance Expense				$Enter a dollar amount		$Enter a dollar amount
Select an opening name for section one Total Fixed ExpensesFixed ExpensesUtilities & Insurance ExpenseContribution MarginSales RevenueOperating IncomeManagement Salary ExpenseDepreciation ExpenseRent ExpenseVariable ExpensesInstructor Salaries Expense
Select an income statement item Instructor Salaries ExpenseRent ExpenseTotal Fixed ExpensesContribution MarginSales RevenueOperating IncomeManagement Salary ExpenseFixed ExpensesDepreciation ExpenseUtilities & Insurance ExpenseTowel, Water, Shake				Enter a dollar amount		Enter a dollar amount
Select a summarizing line for the first part Variable ExpensesInstructor Salaries ExpenseContribution MarginRent ExpenseTotal Fixed ExpensesUtilities & Insurance ExpenseOperating IncomeFixed ExpensesDepreciation ExpenseSales RevenueManagement Salary Expense				Enter a total amount for the first part		$Enter a total amount per unit rounded to 2 decimal places
Select an opening name for section two Management Salary ExpenseInstructor Salaries ExpenseContribution MarginOperating IncomeRent ExpenseVariable ExpensesUtilities & Insurance ExpenseFixed ExpensesSales RevenueDepreciation ExpenseTotal Fixed Expenses
Select an income statement item Sales RevenueVariable ExpensesTotal Fixed ExpensesRent ExpenseManagement Salary ExpenseOperating IncomeUtilities & Insurance ExpenseContribution MarginInstructor Salaries ExpenseFixed ExpensesDepreciation Expense		$Enter a dollar amount
Select an income statement item Rent ExpenseVariable ExpensesContribution MarginDepreciation ExpenseInstructor Salaries ExpenseFixed ExpensesSales RevenueOperating IncomeManagement Salary ExpenseTotal Fixed ExpensesUtilities & Insurance Expense		Enter a dollar amount
Select an income statement item Variable ExpensesFixed ExpensesUtilities & Insurance ExpenseManagement Salary ExpenseInstructor Salaries ExpenseContribution MarginRent ExpenseDepreciation ExpenseOperating IncomeTotal Fixed ExpensesSales Revenue		Enter a dollar amount
Select an income statement item Management Salary ExpenseRent ExpenseContribution MarginVariable ExpensesInstructor Salaries ExpenseOperating IncomeFixed ExpensesTotal Fixed ExpensesUtilities & Insurance ExpenseDepreciation ExpenseSales Revenue		Enter a dollar amount
Select an income statement item Contribution MarginInstructor Salaries ExpenseManagement Salary ExpenseSales RevenueOperating IncomeUtilities & Insurance ExpenseVariable ExpensesDepreciation ExpenseTotal Fixed ExpensesFixed ExpensesRent Expense		Enter a dollar amount
Select a closing name for section two Total Fixed ExpensesFixed ExpensesUtilities & Insurance ExpenseManagement Salary ExpenseSales RevenueContribution MarginInstructor Salaries ExpenseVariable ExpensesRent ExpenseOperating IncomeDepreciation Expense				Enter a total amount for section two
Select a closing name for this statement Management Salary ExpenseContribution MarginRent ExpenseSales RevenueTotal Fixed ExpensesOperating IncomeVariable ExpensesDepreciation ExpenseUtilities & Insurance ExpenseInstructor Salaries ExpenseFixed Expenses				$Enter a total amount for this statement