Solution:$171,000
Working:
Membership | $141,000 |
Personal Training | $76,000 |
Product Sales | $67,000 |
Total Revenue | $284,000 |
Cost of Goods Sold | $38,000 |
Gross Profit | $246,000 |
Less: | |
Front desk staff wages expense | $17,000 |
Personal training commission | $38,000 |
Space rental expense | $11,000 |
Straight line depreciation expense | $6,000 |
Rental insurance expense | $3,000 |
Operating income | $171,000 |
Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn...
Part B Schrute Farm Sales buys portable generators for $460 and sells them for $740. He pays a sales commission of 5% of sales revenue to his sales staff. Mr. Schrute pays $4,000 a month rent for his store, and also pays $1,800 a month to his staff in addition to the commissions. Mr. Schrute sold 500 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of June, what would be his contribution margin?...
Angie's Amazing Getups Incorporated is a Canadian controlled private corporation with a head office in London, Ontario. The company is a manufacturer of high end custom costumes and makeup used in movie and theatre productions with sales in Canada and the U.S.The company started in business in 2015 when the sole shareholder, Angela Q. Snodgrass, was photographed by the paparazzi after a particularly enthusiastic night of partying. When Angela saw herself on the front page of every tabloid newspaper the...