FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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(c) Prepare George’s monthly contribution format income statement. Assume that he teaches 5,500 clients. (Round per unit values to 2 decimal places, e.g. 52.75 and all other answers to 0 decimal places, e.g. 1,234.)

George Robinson recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $10 per person. To
differentiate his gym and better serve his clients, George provides a towel, a bottle of water, and an after-workout protein shake to
each person participating in a class, at a cost of $1.90 per person. George employs four part-time instructors and pays them each
$2,500 per month. He also pays himself a monthly salary of $7,000. George's other monthly costs are $3,000 for rent, $2,000 for
depreciation on his 34 bikes, and $1,775 in utilities and insurance.
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Transcribed Image Text:George Robinson recently fulfilled his long-time dream of opening a gym that offers spinning exercise classes for $10 per person. To differentiate his gym and better serve his clients, George provides a towel, a bottle of water, and an after-workout protein shake to each person participating in a class, at a cost of $1.90 per person. George employs four part-time instructors and pays them each $2,500 per month. He also pays himself a monthly salary of $7,000. George's other monthly costs are $3,000 for rent, $2,000 for depreciation on his 34 bikes, and $1,775 in utilities and insurance.
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