Mixed Costs and Cost Formula Callie\'s Gym is a complete fitness center. Owner C
ID: 2336599 • Letter: M
Question
Mixed Costs and Cost Formula
Callie's Gym is a complete fitness center. Owner Callie Ducain employs various fitness trainers who are expected to staff the front desk and to teach fitness classes. While on the front desk, trainers answer the phone, handle walk-ins and show them around the gym, answer member questions about the weight machines, and do light cleaning (wiping down the equipment, vacuuming the floor). The trainers also teach fitness classes (e.g., pilates, spinning, body pump) according to their own interest and training level. The cost of the fitness trainers is $600 per month and $30 per class taught. Last month, 100 classes were taught.
Required:
1. Develop a cost equation for total cost of labor.
Total labor cost = $ + $ per class taughtExplanation / Answer
1. Develop a cost equation for total cost of labor.
Why did the unit labor cost decrease?
Total labor cost = $ cost of the fitness trainers is $600 per month + 30$ per class taught