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Metro Health & Spa offers three membership programs: Platinum, Gold and Silver. Metro incurs annual fixed costs of $19,200,000. Additional information about the programs is
Metro Health & Spa offers three membership programs: Platinum, Gold and Silver. Metro incurs annual fixed costs of $19,200,000.
Additional information about the programs is presented below:
13.What is the weighted-average unit contribution margin?
14. Assuming that the sales mix of memberships remains constant, what is the total number of memberships that the company must sell to break even?
15. What is the break-even point (in memberships) for the Gold membership?
Metro Health & Spa offers three membership programs: Platinum, Gold and Silver. Metro incurs annual fixed costs of $19,200,000. Additional information about the programs is presented below: Platinum Gold Silver 150.000 120.000 Memberships sold Membership price Variable cost per membership 30.000 $2,500 $1,000 $1,000 $800 $500 $200 4 Page 13. What is the weighted average unit contribution margin? 14. Assuming that the sales mix of memberships remains constant, what is the total number of memberships that the company must sell to break even? 15. What is the break-even point (in memberships) for the "Gold" membershipStep by Step Solution
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