runi He also pays himself a monthly salary of 4488 Anthonys

r.uni He also pays himself a monthly salary of $4,488. Anthony\'s other monthly costs are $1,546 for rent, $1,328 on his 34 bikes, and $1,868 in utilities and insurance.

Solution

Contributions margin per unit

Revenue per person. = $5.57

Variable cost per person. = $2.03

Contributions per person. =$ 3.54

Contributions margin ratio

Contributions/revenue ×100

=$3.54/$5.57*100. = 63.55%

Income statement assume teaching 5222 clients

Contributions of client revenue = 5222×$3.54. =$18485.88

Part time employee pay = 3×$1240. =($3720)

Self month salary. =($4488)

Other monthly cost for rent =($1546)

Depreciation for 34 bikes. =($1328)

Utilities and insurance expenses. =($1868)

Net income. =$5435.88