AnthonyHerrera 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, 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 $2.65 per person. Anthony employs four part-time instructors and pays them each $1,500 per month. He also pays himself a monthly salary of $6,500. Anthony’s other monthly costs are $1,800 for rent, $1,350 for depreciation on his 30 bikes, and $1,425 in utilities and insurance. (a) What is Anthony’s 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 Anthony’s contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin ratio   enter Contribution margin ratio in percentages %

Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
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AnthonyHerrera 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, 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 $2.65 per person. Anthony employs four part-time instructors and pays them each $1,500 per month. He also pays himself a monthly salary of $6,500. Anthony’s other monthly costs are $1,800 for rent, $1,350 for depreciation on his 30 bikes, and $1,425 in utilities and insurance.

(a) What is Anthony’s 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 Anthony’s contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.)

Contribution margin ratio   enter Contribution margin ratio in percentages %  
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