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Chris Anderson recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $10 per person. To differentiate his gym and
Chris Anderson 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, Chris provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $1.85 per person. Chris employs four part-time instructors and pays them each $2,000 per month. He also pays himself a monthly salary of $6,500. Chris's other monthly costs are $2,500 for rent, $1,750 for depreciation on his 34 bikes, and $1,650 in utilities and insurance. (a) What is Chris's contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin $ per unit (b) What is Chris's contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin ratio % (c) Prepare Chris's 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. 1,234.) Per Unit $ $ $ $ A (A A $ > V > > A A > >
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