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Tom and Lynda own and operate Hercules Health Club. The club currently has 900 individual memberships and 300 family memberships. The monthly fee for individual
Tom and Lynda own and operate Hercules Health Club. The club currently has 900 individual memberships and 300 family memberships. The monthly fee for individual and family memberships is $100 and $150, respectively. Variable costs are $35 and $60 per month, respectively, for individual and family memberships. Monthly fixed costs amount to $42,750. a. Calculate Hercules' weighted average unit contribution margin. b. Calculate Hercules' weighted average contribution margin ratio. c. What is the number of individual and family memberships at breakeven volume? d. What is the total break-even revenue? e. What is their margin of safety in $s? in %? What does this mean
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