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>