Mixed Costs and Cost Formula Callie's Gym is a complete fitness center. Owner Callie...

70.2K

Verified Solution

Question

Accounting

Mixed Costs and Cost Formula
Callie's Gym is a complete fitness center. Owner Callie Ducain employs various fitness trainers who are expected to staff the front desk and to teach fitness classes. While on the front desk, trainers answer the phone, handle walk-ins and show them around the gym, answer member questions about the weight machines, and do light cleaning (wiping down the equipment, vacuuming the floor). The trainers also teach fitness classes (e.g., pilates, spinning, body pump) according to their own interest and training level. The cost of the fitness trainers is $1,300 per month and $50 per class taught. Last month, 100 classes were taught.
Required:
Develop a cost equation for total cost of labor.
Total labor cost =$,+$ per class taught
What was total variable labor cost last month?
What was total labor cost last month?
What was the unit cost of labor (per class) for last month? per class
What if Callie increased the number of classes offered by 50 percent?
a. What would be the total labor cost?
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students