Flavio's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the revenue for all personal training sessions. The Fitness Club also sells nutrition products. Flavio's general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year.

-If a contribution margin income statement is prepared for the year, what is the contribution margin at Flavio's Fitness Club?
A) $70,000
B) $180,000
C) $250,000
D) $320,000

Question

Flavio's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the revenue for all personal training sessions. The Fitness Club also sells nutrition products. Flavio's general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year.
 
-If a contribution margin income statement is prepared for the year, what is the contribution margin at Flavio's Fitness Club?
A) $70,000 
B) $180,000 
C) $250,000 
D) $320,000

Quizplus · Accepted Answer

The contribution margin is calculated by subtracting variable costs from sales revenue. The correct answer would depend on the specific financial data provided for Flavio's Fitness Club, which is not included in the question. However, based on the options given, $180,000 is the most likely correct choice for the contribution margin.

Flavio's Fitness Club Provides Monthly Memberships as Well as Personal