Western Athletic Club International $($WACI$)$ owns and operates a chain of fitness clubs and is interested in estimating the CLV for new memberships. Practically all of WACI's costs are fixed costs. Meaning that, when a member pays his or her monthly dues, there are no variable costs associated with that payment and all the revenues go toward covering the fixed costs of the business $($facilities$,$ salaries, equipment, etc.$)$ WACI's monthly membership dues are $$\mathrm{}90$ per person. The average member keeps his or her membership active for $15$ months. 

 

 

 In addition to membership, WACI also offers personal training services through a staff of independent athletic trainers. WACI and the trainer split the fees associated with personal training $50/50.$ Historically, $22\%$ of members choose to use a personal trainer for, on average, $24$ training sessions. Sessions with a personal trainer are priced at $$5\mathrm{}$9 each. 

 

What is the monthly margin generated by a new membership $($don$\text{'}$t include training$)?$

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The monthly margin generated by a new membership at WAC... View the full answer