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Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $5.11 per person. To differentiate his gym and
Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $5.11 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 $2.18 per person. Anthony employs three part-time instructors and pays them each $1,030 per month. He also pays himself a monthly salary of $4,264. Anthony's other monthly costs are $1,650 for rent, $1,424 for depreciation on his 32 bikes, and $1,930 in utilities and insurance. (a) What is Anthony's contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin per unit (b) What is Anthony's contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin ratio (c) Prepare Anthony's monthly contribution format income statement. Assume that he teaches 5,423 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to o decimal places, e.g. 5,275.) Unit Variable Expenses O Sales Revenue Total Fixed Expenses 49 Operating Income
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