A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.) Revenue Less: Variable expenses Contribution margin Less: Fixed expenses Net income $1,850,000 1,040,000 $ 810,000 555,000 $ 255,000 Required 1. Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent, and fixed expenses increase b 50 percent 2. Prepare a contribution income statement if the ratio of variable expenses to revenue doubles. There is no change in the hoter's volume of activity. Fixed expenses decline by $170,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent, and fixed expenses increase by 50 percent. NANTUCKET INN Contribution Income Statement Revenue Less: Variable expenses Contribution margin (loss) Less: Fixed expenses