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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 $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
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Answers: 2
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