Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Anthony Herrera recently fultiled his long-time dream of opening a gym that offers spinning exercise classes for $5.83 per person. To differentiate his gym and

image text in transcribed
image text in transcribed
Anthony Herrera recently fultiled his long-time dream of opening a gym that offers spinning exercise classes for $5.83 per person. To differentiate his gym and better serve his clients, nthony provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $2.30 per person. Anthony employs three part-time instructors and pays them each $1,474 per month. He also pays himself a monthly salary of $4,008. Anthony's other monthly costs are $1,574 for rent, $1,408 for depreciation on his 30 bikes, and $1,898 in utilities and insurance. (a) What is Anthony's contribution margin per unit? (Round answer to 2 decimal places,o.g.52.75.) Contribution margin (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 5,375 cdlients. (Round per unit values to 2 decimal places, e.-g. 52.75 and all other answers to 0 decimal places, e.g. 5,275.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Financial Management Federal Information System Controls Audit Manual

Authors: U.S. Government Accountability Office

1st Edition

1289168172, 978-1289168179

More Books

Students also viewed these Accounting questions

Question

Have I incorporated my research into my outline effectively?

Answered: 1 week ago