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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
Edition 17ISBN: 978-0078025778 Exercise 39
Allocating Productive Capacity with Constrained Resources
A local gym has 20 stationary bicycles that are available for classes a combined total of 840 hours per week. The bicycles are used in two different exercise programs. A cycling class lasts one hour and earns a contribution margin of $18 per customer. A combo class using both bicycles and floor routines lasts two hours. It generates a contribution margin of $20 per customer. If demand for the cycling class is limited to 340 hours per week, how much total contribution margin could the gym generate from both programs when operating at full capacity?
A local gym has 20 stationary bicycles that are available for classes a combined total of 840 hours per week. The bicycles are used in two different exercise programs. A cycling class lasts one hour and earns a contribution margin of $18 per customer. A combo class using both bicycles and floor routines lasts two hours. It generates a contribution margin of $20 per customer. If demand for the cycling class is limited to 340 hours per week, how much total contribution margin could the gym generate from both programs when operating at full capacity?
Explanation
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Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello
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