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>
