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Exercise 2-16 Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $5.77 per person. To differentiate his
Exercise 2-16 Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $5.77 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 instructors and pays them each $1,498 per month. He also pays himself a monthly salary of $4,306. Anthony's other monthly costs are $1,634 for rent, $1,424 for depreciation on his 34 bikes, and $1,956 in utilities and insurance. each person participating in a class, at a cost of $2.62 per person. Anthony employs three part-time (a) What is Anthony's contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin per unit decimal places, e.g. 52.75.) (b) What is Anthony's contribution margin ratio? (Round answer to 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 0 decimal places, e.g. 5,275.)
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