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elena-14-01-66 [18.8K]
4 years ago
5

Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the re

venue 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.
Account Amount Account Amount
Membership revenue $140,000 Personal trainer wages expense _____
Personal training revenue $75,000 Space rental expense $11,000
Product Sales $65,000 Straight line depreciation expense $6,000
Cost of Product sold $35,000 Rental insurance expense $3,000
Front desk staff wages expense $12,000


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

a. $207,500

b. $280,000

c. $175,500

d. $384,500
Business
1 answer:
kiruha [24]4 years ago
8 0

Answer:

c. $175,500

Explanation:

Revenue                                                        $140,000

Training revenue                                          $75,000  

Product Sales                                               <u>$65,000  </u>

Total Revenue                                              $280,000

Variable Expenses

Personal trainer wages expense $70,000

Cost of Product sold                     $35,000

Total Variable Cost                                       (<u>$105,000)</u>

Contribution margin / operating income     $175,000

Fixed Costs

Space rental expense                  $11,000

Depreciation expense                 $6,000

Rental insurance expense           $3,000

Front desk staff wages expense $12,000

Total Fixed cost                                             (<u>$32,000)</u>

Net Income                                                    <u>$143,000</u>

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Answer:

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Therefore,

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Answer: $18,224 unfavourable

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The materials quantity variance for the month will be calculated thus:

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1. Will your company use advertising as a promotional strategy? If so, which types of advertising will you use? If not, why not?
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1. Will, your company use advertising as a promotional strategy? If so, which types of advertising will you use? If not, why not?  

Answer: Yes, printed strategies, social networks, events, and public relations will be used.

Explanation:

The promotion strategies are used in the marketing of the companies to be able to inform their potential clients about the products of the company. Through the promotion strategies, the advertising media are chosen with which the target population will be reached as potential customers, making known the benefits of the products and their characteristics.

For example, promotional strategies include print advertising; give out flyers to inform people about the product, stick posters or put advertising banners. Another method is social networks that are currently widely used for advertising due to the demand for use that people have in these networks, which facilitates the promotion of a product.

Likewise, events will be held where potential clients can attend to know the products that are being sold and lastly, public relations are used through which you can have new associations for the sale of products.

2. Will your company use public relations as a promotional strategy? If so, describe at least two ways you will communicate with the public.

Answer: Yes, product launch party in the main store and press releases.

Explanation:  

Public relations are part of the promotion strategies of a company, it has the function of establishing or strengthening links with potential customers, companies or magazines, through these events people are informed of the products they want to sell.  

For example, when having a product launch party, the objective is to bring together the media and customers so they know the product and potential customers, while the media make more publicity about the product. Likewise, the company can promote its products through press releases through which it explains the characteristics and benefits of the product.

3. Describe at least two things your company could do in order to try to get publicity. TIP: If this includes press releases, describe what the release or releases would be about.

1. Billboard where the product is presented with a slogan that catches the public's attention.  

2. contract a person with a lot of influence on social networks to announce the prod.  

Explanation:

Advertising aims to increase the sales statistics of a product, which is why they use different strategies to place the product on the market, to carry out an analysis to find out how to reach the desired target. For example, billboards are an advertising tool, it should be placed in a place that is heavily traveled by people so it can be seen, and if possible, several billboards are placed in strategic places, in the same way, a person with a lot of influence in the social networks can be hired to promote the product, in this way the company can transmit the product information to more people.

4.   Choose a type of advertisement (newspaper, magazine, outdoor, radio, Internet, and so on) to research, and then answer the following questions

Answer:

Advertisements with Slogan.

  a. Find the Web site for a company that sells this type of advertisement (such as newspaper, magazine, outdoor, radio, Internet, or another type of ad). What is this company's name?

Answer:

Company name: Doyle Dane Bernbach

   b. Describe at least one type of advertisement you can purchase from this company, including any details about the size, length, color, or other features of the advertisement.

Answer:

An advertisement showing the product you want to market being used by a young person, highlighting the advantages of the product and how good it would be to have it. It should be the size of a 33-inch screen, bright colors, and bold lettering and slogan.

   c. How much does this type of advertisement cost?

Answer:

The price is highly variable and these quotes are given when the company is shown what it needs and they are in negotiations for the advertisement.

    d.  Do you think this type of advertisement would be effective for your company? Why or why not?

Answer: Yes, the big and eye-catching slogan ads are the ones that resonate in people's thoughts, using each item described may make the product look very interesting.

Explanation:    

Advertisements are the support used by companies to advertise their products, these ads can be of different types for visual, auditory examples or a combination of the two, likewise, the ads can present only images or can also present a slogan.

Slogan ads are widely used because of the impact it leaves on people since the slogan can create a significant effect on potential customers.

You can find the other answer in the PDF file

Download pdf
4 0
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