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 the amount of total revenue at Flavio's Fitness Club?
A) $125,000
B) $185,000
C) $250,000
D) $290,000

Question

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 the amount of total revenue at Flavio's Fitness Club?
A) $125,000 
B) $185,000 
C) $250,000 
D) $290,000

Quizplus · Accepted Answer

To calculate total revenue in a contribution margin income statement, we need to add up all sources of revenue.

From the given ledger accounts, we can calculate the following:

- Monthly membership revenue: $150,000 
- Personal training revenue: $60,000 (50% goes to trainers, so the other 50% is revenue for the club) 
- Nutrition product revenue: $40,000

Total revenue = $150,000 + $60,000 + $40,000 = $250,000

Therefore, the correct answer is C.

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