The Fitness Health SPA charges a non refundable annual membership fee - ProProfs Discuss
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The Fitness Health SPA charges a non refundable annual membership fee of P 6,000 for its services. For this fee, each member receives a fitness evaluation (value P 1,000 ), a monthly magazine (annual value P 320), and 2 hours use of the equipment each week (annual value P 7,000) . Each of the three elements of the annual membership can be purchased separately. The initial direct costs to obtain the membership are P1,200. The direct cost of the fitness evaluation is P 500, and the monthly direct costs to provide the other services are estimated to be P 150 per person. A membership was sold to a customer on April 1, 2009. The total fees earned by the company on this membership for the year ended December 31, 2009 is:



A. P 6,000
B. P 4,500
C. P 4,600
D. P 4,750

This question is part of practical accounting 1
Asked by John_allen, Last updated: Jan 22, 2020

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1 Answer

John Smith

John Smith

Answered Aug 15, 2017

P 4,500
 

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