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

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Accounting

Mixed Costs and Cost Formula
Callie's Gym is a complete fitness center. Owner Callie Ducainemploys various fitness trainers who are expected to staff thefront desk and to teach fitness classes. While on the front desk,trainers answer the phone, handle walk-ins and show them around thegym, answer member questions about the weight machines, and dolight 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. Thecost of the fitness trainers is $600 per month and $30 per classtaught. Last month, 100 classes were taught.
Required:
1. Develop a cost equation for total cost oflabor.
Total labor cost = $ + $ per class taught
2. What was total variable labor cost last month?
$
3. What was total labor cost last month?
$
4. What was the unit cost of labor (per class) for lastmonth?
$ per class
5. What if Callie increased the numberof classes offered by 50 percent?
a. What would be the total labor cost?
$
b. The unit labor cost? If required, round your answer to thenearest cent.
$ per class
c. Why did the unit labor cost decrease?

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1 Develop a cost equation for total cost of labor Total labor cost cost of the fitness trainers is 600 per month 30 per class taught 2 What was total variable See Answer

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In: AccountingMixed Costs and Cost FormulaCallie's Gym is a complete fitness center. Owner Callie Ducainemploys...Mixed Costs and Cost FormulaCallie's Gym is a complete fitness center. Owner Callie Ducainemploys various fitness trainers who are expected to staff thefront desk and to teach fitness classes. While on the front desk,trainers answer the phone, handle walk-ins and show them around thegym, answer member questions about the weight machines, and dolight 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. Thecost of the fitness trainers is $600 per month and $30 per classtaught. Last month, 100 classes were taught.Required:1. Develop a cost equation for total cost oflabor.Total labor cost=$+$ per class taught2.What was total variable labor cost last month?$3.What was total labor cost last month?$4.What was the unit cost of labor (per class) for lastmonth?$ per class5.What if Callie increased the numberof classes offered by 50 percent?a.What would be the total labor cost?$b.The unit labor cost? If required, round your answer to thenearest cent.$ per classc.Why did the unit labor cost decrease?

4.	What was the unit cost of labor (per class) for lastmonth?
	$ per class

a.	What would be the total labor cost?
	$
b.	The unit labor cost? If required, round your answer to thenearest cent.
	$ per class
c.	Why did the unit labor cost decrease?