Capital City Hotel's restaurant is open for breakfast, lunch and dinner. The accountants prepared a segmented...

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Capital City Hotel's restaurant is open for breakfast, lunch and dinner. The accountants prepared a segmented contribution margin income statement for the past year based the three meal periods as shown below. The manager is concerned with the lunch period, as it has been showing a loss for the past few years. Capital City Hotel - Restaurant Segmented Contribution Margin Income Statement For the Year Ended December 31, 2020 Revenue Variable Costs Contribution Margin Fixed Costs Breakfast Lunch Dinner $633,000 $664,000 $472,000 $1,769,000 $202,000 $212,000 $267,000 $681,000 Total $431,000 $452,000 $205,000 $1,088,000 $374,000 $509,000 $141,000 $1,024,000 Income from Operations $57,000 $-57,000 $64,000 $64,000 Recommend whether management should keep or drop the lunch period service based on the following independent scenarios. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in income. Indicate keep or drop using the drop-down lists. a) Assume that all the fixed costs relating to the lunch service would remain with the company if it stopped serving lunch. Change in Income from Operations: $ Capital City Hotel should lunch b) Assume that all the fixed costs relating to lunch service would no longer be incurred by the company if it stopped serving lunch. Change in Income from Operations: $ Capital City Hotel should lunch c) Assume that only 30% of the fixed costs relating to lunch service would remain if the company stopped serving lunch. Change in Income from Operations: $ Capital City Hotel should lunch Capital City Hotel's restaurant is open for breakfast, lunch and dinner. The accountants prepared a segmented contribution margin income statement for the past year based the three meal periods as shown below. The manager is concerned with the lunch period, as it has been showing a loss for the past few years. Capital City Hotel - Restaurant Segmented Contribution Margin Income Statement For the Year Ended December 31, 2020 Revenue Variable Costs Contribution Margin Fixed Costs Breakfast Lunch Dinner $633,000 $664,000 $472,000 $1,769,000 $202,000 $212,000 $267,000 $681,000 Total $431,000 $452,000 $205,000 $1,088,000 $374,000 $509,000 $141,000 $1,024,000 Income from Operations $57,000 $-57,000 $64,000 $64,000 Recommend whether management should keep or drop the lunch period service based on the following independent scenarios. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a decrease in income. Indicate keep or drop using the drop-down lists. a) Assume that all the fixed costs relating to the lunch service would remain with the company if it stopped serving lunch. Change in Income from Operations: $ Capital City Hotel should lunch b) Assume that all the fixed costs relating to lunch service would no longer be incurred by the company if it stopped serving lunch. Change in Income from Operations: $ Capital City Hotel should lunch c) Assume that only 30% of the fixed costs relating to lunch service would remain if the company stopped serving lunch. Change in Income from Operations: $ Capital City Hotel should lunch