Kenneth Clark 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, Kenneth provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $1.91 per person. Kenneth employs four part-time instructors and pays them each $2,600 per month. He also pays himself a monthly salary of $7,100. Kenneths other monthly costs are $3,100 for rent, $2,050 for depreciation on his 34 bikes, and $1,800 in utilities and insurance. (a) What is Kenneths 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 Kenneths contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.)

Contribution margin ratio

enter Contribution margin ratio in percentages

%

(c) Prepare Kenneths monthly contribution format income statement. Assume that he teaches 5,600 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.)