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c) Prepare Anthony's monthly contribution format income statement Assume that he teaches 4,500 dients. (Round per unit ralues to 2 decimal places, eg. 5275 and all other answers to 0 decimal places, eg 1,234) Per Uni %24

c) Prepare Anthony's monthly contribution format income statement Assume that he teaches 4,500 dients. (Round per unit ralues to 2 decimal places, eg. 5275 and all other answers to 0 decimal places, eg 1,234) Per Uni %24

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(c) Prepare Anthony's monthly contribution format income statement. Assume that he teaches 4,500 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 1,234,.) Per Uni Anthony Herrera 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 $1,425 in utilities and insurance. (a) What is Anthony's contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin 2$ 7.35 per unit (b) What is Anthony's contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin ratio 277.35 (c) Prepare Anthony's monthly contribution format income statement. Assume that he teaches 4,500 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 1,234.)
Transcribed Image Text:(c) Prepare Anthony's monthly contribution format income statement. Assume that he teaches 4,500 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 1,234,.) Per Uni Anthony Herrera 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 $1,425 in utilities and insurance. (a) What is Anthony's contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin 2$ 7.35 per unit (b) What is Anthony's contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin ratio 277.35 (c) Prepare Anthony's monthly contribution format income statement. Assume that he teaches 4,500 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 1,234.)
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