In: Accounting
Hot Cross Buns Gym provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the revenue for all personal training sessions. The gym also sells nutrition products. The 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 |
$144,000 |
Personal trainer wages expense |
? |
Personal training revenue |
$76,000 |
Space rental expense |
$11,000 |
Product sales |
$69,000 |
Straight line depreciation expense |
$6,000 |
Cost of product sold |
$35,000 |
Rental insurance expense |
$3,000 |
Front desk staff wages expense |
$15,000 |
If a contribution margin income statement is prepared for the year, what is operating income?
A.
$181,000
B.
$216,000
C.
$254,000
D.
$289,000