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  3. 3. pierre and anja own hercules health club. an in

3. Pierre and Anja own Hercules Health Club. An individual membership costs $100 per month....

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Accounting

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3. Pierre and Anja own Hercules Health Club. An individual membership costs $100 per month. Pierre and Anja estimate variable costs at $40 per member month and fixed costs at $40,020 per month. They currently have 950 members. Required: (35 pts) a. What is Hercules's monthly profit equation? b. How many members does Hercules need to break even? What does this translate to in revenue? (Break- Even point in sales dollars) c. Suppose Hercules pays income taxes that amount to 35% of income. How many members does Hercules need to report after-tax profits of $11,700? d. Using the contribution margin ratio, calculate the revenues required to earn an after-tax profit of $11,700. e. What is Hercules's margin of safety? (Units and Dollars)

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