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Edward Lewis recently fulfilled his long-time dream of opening a gym that offers spinning exercise...

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Accounting

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Edward Lewis 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, Edward provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $1.93 per person. Edward employs four part-time instructors and pays them each $2,800 per month. He also pays himself a monthly salary of $7,300. Edward's other monthly costs are $3,300 for rent, $2,150 for depreciation on his 32 bikes, and $1,850 in utilities and insurance. (a) What is Edward's contribution margin per unit? (Round answer to 2 decimal places, e.g. 52.75.) Contribution margin $ per unit (b) What is Edward's contribution margin ratio? (Round answer to 2 decimal places, eg. 52.75.) Contribution margin ratio % (c) Prepare Edward's monthly contribution format income statement. Assume that he teaches 5,800 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 1,234.)

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