AnthonyHerrera 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 $2.65 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, e.g. 52.75.) Contribution margin $ enter Contribution margin in dollars per unit per unit (b) What is Anthony’s contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin ratio enter Contribution margin ratio in percentages %
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
(a) What is Anthony’s contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.)
| Contribution margin | $ enter Contribution margin in dollars per unit | per unit |
(b) What is Anthony’s contribution margin ratio? (Round answer to 2 decimal places, e.g. 52.75.)
| Contribution margin ratio | enter Contribution margin ratio in percentages | % |
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