Question

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 $145,000 Personal trainer wages expense ? Personal training revenue $78,000 Space rental expense $11,000 Product sales $67,000 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 traditional income statement is prepared for the year, what is Gross Profit? $286,000 $325,000 $290,000 $255,000

Answer 1

ANSWER

Correct option is D=$255,000

Membership revenue	$145,000
Personal training revenue	$78,000
Product sales	$67,000
Total Revenue		$290,000
Cost of product sold		$(35,000 )
Gross Profit		$255,000

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