Jean'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.Jean's general ledger accounts indicate the following for the year.The front desk staff wages expense remains the same throughout the year.

If a traditional income statement is prepared for the year,what is operating income?

Question

Jean'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.Jean's general ledger accounts indicate the following for the year.The front desk staff wages expense remains the same throughout the year.

If a traditional income statement is prepared for the year,what is operating income?

Quizplus · Accepted Answer

A)
Membership $140,000
Personal Training 75,000
Product Sales 65,000
Total Revenue 280,000
Cost of Goods Sold 35,000
Gross Profit $245,000
Less: Wage expense 12,000
Personal Trainer wage 37,500
Space rental 11,000
Depreciation 6,000
Insurance 3,000
Operating Income 175,500

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