A contribution income statement for the Nantucket Inn is shown below. $($Ignore income taxes.$)$ Required $1$

Prepare a contribution income statement if the hotel's volume of activity increases by $20$ percent, and fixed expenses increase

by $40$ percent.

$*$Red text indicates no response was expected in a cell or a formula$-$based calculation is incorrect; no points deducted. Prepare a contribution income statement if the ratio of variable expenses to revenue doubles. There is no change in the

hotel's volume of activity. Fixed expenses decline by $$26,000.$

$|$

$*$Red text indicates no response was expected in a cell or a formula$-$based calculation is incorrect; no points deducted.

EX $7-32($Algo$)$ Continuation of Preceding Exercise $($LO $7-4,7-7)$

Prepare a new contribution income statement for the Nantucket Inn in each of the following independent situations. $($Ignore

income taxes.$)$

Required:

Prepare a contribution income statement if the hotel's volume of activity increases by $20$ percent, and fixed expenses increase

by $40$ percent.

Prepare a contribution income statement if the ratio of variable expenses to revenue doubles. There is no change in the

hotel's volume of activity. Fixed expenses decline by $$26,000.$