Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $5.38 per person. To differentiate his gym and better serve his clients, Anthony provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $2.71 per person. Anthony employs three part-time instructors and pays them each $1,228 per month. He also pays himself a monthly salary of $4,336. Anthony's other monthly costs are $1,684 for rent, $1,414 for depreciation on his 34 bikes, and $1,868 in utilities and insurance. A. What is Anthony's contribution margin per unit? B. What is Anthony's contribution margin ratio?
Anthony Herrera recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $5.38 per person. To differentiate his gym and better serve his clients, Anthony provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $2.71 per person. Anthony employs three part-time instructors and pays them each $1,228 per month. He also pays himself a monthly salary of $4,336. Anthony's other monthly costs are $1,684 for rent, $1,414 for depreciation on his 34 bikes, and $1,868 in utilities and insurance. A. What is Anthony's contribution margin per unit? B. What is Anthony's contribution margin ratio?
Chapter6: Business Expenses
Section: Chapter Questions
Problem 37P
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Anthony herrera recently fulfilled his long time dream
Transcribed Image Text:Anthony Herrera recently fulfilled his long-time dream of
opening a gym that offers spinning exercise classes for
$5.38 per person. To differentiate his gym and better serve
his clients, Anthony provides a towel, a bottle of water, and
an after-workout protein shake to each person
participating in a class, at a cost of $2.71 per person.
Anthony employs three part-time instructors and pays
them each $1,228 per month. He also pays himself a
monthly salary of $4,336. Anthony's other monthly costs
are $1,684 for rent, $1,414 for depreciation on his 34 bikes,
and $1,868 in utilities and insurance.
A. What is Anthony's contribution margin per unit?
B. What is Anthony's contribution margin ratio?
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