Question
Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $ 10 per person. To differentiate his gym
Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $ 10 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 $ 2.65 per person. Anthony employs four part-time instructors and pays them each $ 1,500 per month. He also pays himself a monthly salary of $ 6,500. Anthonys other monthly costs are $ 1,800 for rent, $ 1,350 for depreciation on his 30 bikes, and $ 1,425 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 4,500 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 1,234.) Per Unit select an income statement item $ enter a dollar amount $ enter a dollar amount select an opening name for section one select an income statement item enter a dollar amount enter a dollar amount select a summarizing line for the first part enter a total amount for the first part $ enter a total amount for the first part select an opening name for section two select an income statement item $ enter a dollar amount select an income statement item enter a dollar amount select an income statement item enter a dollar amount select an income statement item enter a dollar amount select an income statement item enter a dollar amount select a closing name for section two enter a total amount for section two select a closing name for this statement $ enter a total amount for this statement.
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