Joseph Moore 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, Joseph provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $1.83 per person. Joseph employs four part-time instructors and pays them each $1,800 per month. He also pays himself a monthly salary of $6,300. Josephs other monthly costs are $2,300 for rent, $1,650 for depreciation on his 32 bikes, and $1,600 in utilities and insurance. (a) What is Josephs contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.)

Contribution margin

$enter Contribution margin in dollars per unit

per unit

(b) What is Josephs contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.)

Contribution margin ratio

enter Contribution margin ratio in percentages

%

(c) Prepare Josephs monthly contribution format income statement. Assume that he teaches 4,800 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
select an income statement item Depreciation ExpenseContribution MarginRent ExpenseInstructor Salaries ExpenseFixed ExpensesSales RevenueVariable ExpensesOperating IncomeManagement Salary ExpenseTotal Fixed ExpensesUtilities & Insurance Expense				$enter a dollar amount		$enter a dollar amount
select an opening name for section one Utilities & Insurance ExpenseOperating IncomeDepreciation ExpenseVariable ExpensesManagement Salary ExpenseTotal Fixed ExpensesFixed ExpensesContribution MarginSales RevenueRent ExpenseInstructor Salaries Expense
select an income statement item Contribution MarginFixed ExpensesOperating IncomeSales RevenueTotal Fixed ExpensesUtilities & Insurance ExpenseRent ExpenseDepreciation ExpenseInstructor Salaries ExpenseTowel, Water, ShakeManagement Salary Expense				enter a dollar amount		enter a dollar amount
select a summarizing line for the first part Variable ExpensesOperating IncomeManagement Salary ExpenseContribution MarginInstructor Salaries ExpenseFixed ExpensesDepreciation ExpenseSales RevenueTotal Fixed ExpensesRent ExpenseUtilities & Insurance Expense				enter a total amount for the first part		$enter a total amount for the first part
select an opening name for section two Sales RevenueUtilities & Insurance ExpenseManagement Salary ExpenseRent ExpenseDepreciation ExpenseTotal Fixed ExpensesInstructor Salaries ExpenseOperating IncomeFixed ExpensesContribution MarginVariable Expenses
select an income statement item Management Salary ExpenseVariable ExpensesRent ExpenseDepreciation ExpenseTotal Fixed ExpensesUtilities & Insurance ExpenseSales RevenueContribution MarginOperating IncomeInstructor Salaries ExpenseFixed Expenses		$enter a dollar amount
select an income statement item Sales RevenueManagement Salary ExpenseOperating IncomeFixed ExpensesVariable ExpensesInstructor Salaries ExpenseDepreciation ExpenseRent ExpenseTotal Fixed ExpensesUtilities & Insurance ExpenseContribution Margin		enter a dollar amount
select an income statement item Fixed ExpensesUtilities & Insurance ExpenseVariable ExpensesInstructor Salaries ExpenseRent ExpenseDepreciation ExpenseManagement Salary ExpenseTotal Fixed ExpensesSales RevenueContribution MarginOperating Income		enter a dollar amount
select an income statement item Fixed ExpensesRent ExpenseOperating IncomeTotal Fixed ExpensesManagement Salary ExpenseUtilities & Insurance ExpenseDepreciation ExpenseContribution MarginVariable ExpensesSales RevenueInstructor Salaries Expense		enter a dollar amount
select an income statement item Depreciation ExpenseSales RevenueTotal Fixed ExpensesOperating IncomeInstructor Salaries ExpenseFixed ExpensesManagement Salary ExpenseUtilities & Insurance ExpenseContribution MarginRent ExpenseVariable Expenses		enter a dollar amount
select a closing name for section two Variable ExpensesDepreciation ExpenseSales RevenueInstructor Salaries ExpenseContribution MarginOperating IncomeUtilities & Insurance ExpenseTotal Fixed ExpensesManagement Salary ExpenseFixed ExpensesRent Expense				enter a total amount for section two
select a closing name for this statement Variable ExpensesInstructor Salaries ExpenseTotal Fixed ExpensesUtilities & Insurance ExpenseFixed ExpensesRent ExpenseOperating IncomeContribution MarginDepreciation ExpenseManagement Salary ExpenseSales Revenue				$enter a total amount for this statement