User Account

All Pages

How many members does hercules need to break even

Assignment Help Accounting Basics
Reference no: EM131778254

Question - Tom and Linda own Hercules Gym. An individual membership costs $100 per month. Tom and Linda estimate variable costs at $35 per member per month and fixed costs at $40,950 per month. They currently have 950 members.

a. How many members does Hercules need to break even?

b. Suppose Hercules pays income taxes that amount to 35% of income. How many members does Hercules need to report after tax profits of $11,375?

c. Using the contribution margin ratio, calculate that revenue required to earn an after-tax profit of $11,375.

d. What is Hercules' margin of safety?

e. What is Hercules' operating leverage?

Reference no: EM131778254

Questions Cloud

Contrast and compare primary sources : Lin Yutang represents the nationalist China intellectual who was 'Best-Sellers' in West. In 'My country and my people", the author analyzes
Will legalization significantly change demand : There is much discussion in the press about several states moving to legalizing marijuana, either for only medical purposes, or more extremely.
Develop a database application using microsoft access : Develop a database application using Microsoft Access. The topic of the final project should be the same topic in your ER project.
Influence the subject matter in the art : How did this influence the subject matter in the art of both the Flemish and the Dutch during this Baroque period?
How many members does hercules need to break even : Tom and Linda own Hercules Gym. An individual membership costs $100 per month. How many members does Hercules need to break even
How should present the data graphically : A total of 5.9 percent of the prime time viewing audience watched shows on ABC, 7.6 percent watched shows on CBS, 5.5 percent on Fox, 6.0 percent on NBC.
What is strategic island concept : What is Strategic Island Concept, and what is it's significance in history/why is this important in history?
Discuss the spread of communism after wwii : Discuss the spread of communism after WWII. Include a description of how the USSR and at least one other communist power emerged.
Calculate the annual end-of-year loan payment : Calculate the annual end-of-year loan payment. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd