Question

Part B

Schrute Farm Sales buys portable generators for $460 and sells them for $740. He pays a sales commission of​ 5% of sales revenue to his sales staff. Mr. Schrute pays $4,000 a month rent for his​ store, and also pays $1,800 a month to his staff in addition to the commissions. Mr. Schrute sold 500 generators in June. If Mr. Schrute prepares a contribution margin income statement for the month of​ June, what would be his contribution​ margin?

A.$618,500

B. $121,500

C.$370,000

D.$248,500

Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn​ 50% of the revenue 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	$141,000		Personal trainer wages expense	​?
Personal training revenue	$78,000		Space rental expense	​$11,000
Product sales	$66,000		Straight line depreciation expense	​$6,000
Cost of product sold	$38,000		Rental insurance expense	​$3,000
Front desk staff wages expense	$17,000

If a contribution margin income statement is prepared for the​ year, what is the amount of total​ revenue?

A.$285,000

B.$323,000

C.$141,000

D.$219,000

​Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn​ 50% of the revenue 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	$141,000		Personal trainer wages expense	​?
Personal training revenue	$78,000		Space rental expense	​$11,000
Product sales	$67,000		Straight line depreciation expense	​$6,000
Cost of product sold	$35,000		Rental insurance expense	​$3,000
Front desk staff wages expense	$15,000

If a traditional income statement is prepared for the​ year, what is Gross​ Profit?

A.$251,000

B.$321,000

C.$286,000

D.$282,000

Answer 1

Solution; 1 Cales revenue 310o00 C740 3500) Lesvaable Cogts vriable Cost of goods ald (usoy s 230 000 oriabie Sales comwissibn s10000) Contaibution magin 1aisoD Opticn re ut Menbership personal Training 4000 18000 pduct Stes Totayevenue $ åsso0 Opton A S cyect

3J Mendber hip Tevenue povsonal trainiug revenue 78000 Scle s pao duct $67000 Cest poduets sold C3.5000) S asi ovo Cpfisn As coect