A local gym has 20 stationary bicycles that are available for classes a combined total of 840

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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?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078025778

17th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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