Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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.)

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

Modernize Your Audit Department Five Critical Areas For Improvement

Authors: Toby DeRoche

1st Edition

B08FKW8B91, 979-8674160274

More Books

Students also viewed these Accounting questions