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 contribution margin 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 contribution margin income statement is prepared for the year, what is operating income?

Quizplus · Accepted Answer

Operating income, also known as operating profit, is calculated by subtracting operating expenses from the gross profit. The contribution margin income statement focuses on separating fixed and variable costs, and operating income is derived after all operating expenses (both variable and fixed) have been subtracted from sales revenue. Without specific figures provided for sales, variable costs, and fixed costs, it's impossible to calculate the exact figure from the options given. However, the correct answer to this question is based on the information that would typically be provided in the scenario described, which is not given here. Therefore, the selection of "C" is arbitrary without the detailed financial data.

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