A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.) Revenue $ 2,450,000 Less: Variable expenses 1,280,000 Contribution margin $ 1,170,000 Less: Fixed expenses 735,000 Net income $ 435,000 Required: 1. Prepare a contribution income statement if the hotels volume of activity increases by 25 percent, and fixed expenses increase by 50 percent. 2. Prepare a contribution income statement if the ratio of variable expenses to revenue doubles. There is no change in the hotels volume of activity. Fixed expenses decline by $290,000.

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 25 percent, and fixed expenses increase by 50 percent. 2. 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 $290,000. Complete this question by entering your answers in the tabs below. Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent, and fixed expenses increase by 50 percent. A contribution income statement for the Nantucket Inn is shown below. (lgnore income taxes.) Required: 1. Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent, and fixed expenses increase by 50 percent. 2. 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 $290,000. Complete this question by entering your answers in the tabs below. 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 $290,000