Multiproduct analysis, weighted contribution margin & weighted contribution margin ratio approach, Hercules (LO5). Tom and Lynda own and operate Hercules Health Club. The club currently has 900...

Multiproduct analysis, weighted contribution margin & weighted contribution margin ratio approach, Hercules (LO5). Tom and Lynda own and operate Hercules Health Club. The club currently has 900 individual memberships and 300 family memberships. The monthly fee for individual and family memberships is $100 and $150, respectively.. Variable costs are $35 and $60 per month, respectively, for individual and family memberships. Monthly fixed costs amount to $42,750.

Required:

a. Calculate Hercules’ average (weighted) contribution margin per membership. Use this answer to calculate the number of individual and family memberships at the break-even point.

b. Calculate Hercules’ weighted contribution margin ratio. Use this answer to calculate the total revenues required to achieve breakeven.