Flavio's Fitness Club Provides Monthly Memberships as Well as Personal

question 54

Multiple Choice

Flavio'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. Flavio's general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year.

-If a contribution margin income statement is prepared for the year, what is operating income at Flavio's Fitness Club?

• A) $147,000
• B) $180,000
• C) $250,000
• D) $353,000

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Definitions:

Quantify

To express or measure something in terms of numbers or quantities.

Capital Budgeting

The process by which investors and managers decide which significant investments or projects to undertake, based on potential profitability.

Risk

The potential for loss, damage, or any other negative occurrence that may be avoided through preemptive action.

Probability Distributions

Mathematical functions that describe all the possible values and likelihoods that a random variable can take within a given range.