A contribution income statement for the Nantucket Inn is shown below. ( Ignore income taxes. ) Revenue
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Question:
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 $ Required: Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the icome statemet. Suppose the hotel's revenue declines by per cent. Use the contributionmargin percentage to calculate the resulting decrease in net income. What is the hotel's operating leverage factor when the revenue is $ Use the operating levergae factor to calculate the increase in net income resulting from a percent increase in sales revenue. Complete this question by entering your answers in the tabs below;Contribution income statemet
amount percent
Revenue $
Variable expenses
Contribution Margin
Fixed expenses
net Income
Related Book For
McGraw-Hill Education SAT 2017
ISBN: 9781259641657
1st Edition
Authors: Christopher Black, Mark Anestis
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