Flavio’s Fitness Club provides monthly memberships as well as personal training sessions. The personal trainers earn 50% of the revenue for all…

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.

Account Amount Account Amount

Membership revenue $125,000 Personal trainer wages expense ?

Personal training revenue $60,000 Space rental expense

$12,000

Product sales $65,000

Straight line depreciation

expense $6,000

Cost of product sold $40,000 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 the amount of total

revenue?

A. $125,000

B. $185,000

C. $250,000

D. $290,000

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