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The owners of LA's Gym currently are working on their operating plan for the coming year , and they have provided you with the following

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The owners of LA's Gym currently are working on their operating plan for the coming year , and they have provided you with the following average membership and cost data for the previous* Year . Annual membership fee $500 per member Number of members* 6, 000 Variable cost ( supplies , instructors , etc . ) $160 per member Fixed costs ( equipment , salaries , etc . ) $1 , 224, 000 The owners anticipate that , for the coming year , both total fixed costs and the variable cost per member will remain unchanged from the previous year . a . Assuming the same number of members as last year , what is LA's expected profit for the coming year ? ( 10 points ) D . How many members must LA's Gymn have to break even ? ( 10 points )

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