Jean'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. Jean's general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year.

Account Amount Account Amount
Membership revenue $140,000 Personal trainer wages expense
Personal training revenue $75,000 Space rental expense $11,000
Product Sales $65,000 Straight line depreciation expense $6,000
Cost of Product sold $35,000 Rental insurance expense $3,000
Front desk staff wages expense $12,000

If a contribution margin income statement is prepared for the year, what is operating income?

a. $207,500

b. $280,000

c. $175,500

d. $384,500

c. $175,500

Explanation:

Revenue                                                        $140,000

Training revenue                                          $75,000  

Product Sales                                               $65,000  

Total Revenue                                              $280,000

Variable Expenses

Personal trainer wages expense $70,000

Cost of Product sold                     $35,000

Total Variable Cost                                       ($105,000)

Contribution margin / operating income     $175,000

Fixed Costs

Space rental expense                  $11,000

Depreciation expense                 $6,000

Rental insurance expense           $3,000

Front desk staff wages expense $12,000

Total Fixed cost                                             ($32,000)

Net Income                                                    $143,000

answer; /// the above statement is (true); good luck

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.