Current Attempt in Progress

Anthony Herrera recently fulfilled his long$-$time dream of opening a gym that offers spinning exercise classes for $$10$ per person. To differentiate his gym and better serve his clients, Anthony provides a towel, a bottle of water, and an after$-$workout protein shake to each person participating in a class, at a cost of $$2\mathrm{.}65$ per person. Anthony employs four part$-$time instructors and pays them each $$1,500$ per month. He also pays himself a monthly salary of $$6,500.$ Anthony's other monthly costs are $$1,800$ for rent, $$1,350$ for depreciation on his $30$ bikes, and $$1,425$ in utilities and insurance.

$($a$)$ What is Anthony's contribution margin per unit? $($Round answer to $2$ decimal places, eg$.52\mathrm{.}75.)$

Contribution margin $ per unit

$($b$)$ What is Anthony's contribution margin ratio? $($Round answer to $2$ decimal places, eg$.52\mathrm{.}75.)$

Contribution margin ratio

$\%$

$($c$)$ Prepare Anthony's monthly contribution format income statement. Assume that he teaches $4,500$ clients. $($Round per unit valu decimal places, eg$.52\mathrm{.}75$ and all other answers to $0$ decimal places, e$.$g$.1,234.)$

Per Unit

Rent Expense

Total Fixed Expenses

Fixed Expenses

Management Salary Expense

Instructor Salaries Expense

Contribution Margin

Variable Expenses

Operating Income

Sales Revenue

Depreciation Expense

Utilities & Insurance Expense