Carriage Company offers guided horse-drawn carriage rides through historic

Athens comma GeorgiaAthens, Georgia.

The carriage business is highly regulated by the city.

CranmoreCranmore

Carriage Company has the following operating costs during April:

During April

CranmoreCranmore

Carriage Company had

13 400

passengers.

SeventySeventy

percent of passengers were adults

($2222

fare) while

3030%

were children

($1414

fare).

Requirements

1.	Prepare the company's contribution margin income statement for the month of April. Round all figures to the nearest dollar.
2.	Assume that passenger volume increases by 1717% in May. Which figures on the income statement would you expect to change, and by what percentage would they change? Which figures would remain the same as in April?

Requirement 1. Prepare the company's contribution margin income statement for the month of April. Round all figures to the nearest dollar. (Do not round interim calculations or amounts. Round all amounts input in the table to the nearest dollar.)

Monthly depreciation expense on carriages and stable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$2,600
Fee paid to the City of Athens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	20% of ticket revenue
Cost of souvenir set of postcards given to each passenger. . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$0.85/set of postcards
Brokerage fee paid to independent ticket brokers (60% of tickets are issued through these	$1.50/ticket sold by broker
brokers; 40% are sold directly by the Cranmore Carriage Company). . . . . . . . . . . . . . . . . . . .
Monthly cost of leasing and boarding the horses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$50,000
Carriage drivers (tour guides) are paid on a per passenger basis. . . . . . . . . . . . . . . . . . . . . . . .	$3.50 per passenger
Monthly payroll costs of non-tour guide employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$7,750
Marketing, website, telephone, and other monthly fixed costs. . . . . . . . . . . . . . . . . . . . . . . . . . .	$7,350

PrintDone

Cranmore Carriage Company
Contribution Margin Income Statement
For the Month Ended April 30
Sales revenue
Less:	Variable expenses
	Fee paid to city
	Complimentary postcards
	Brokerage fee
	Carriage driver wages
Contribution margin
Less:	Fixed expenses
	Leasing and boarding horses
	Non-carriage driver payroll expense
	Depreciation expense
	Other fixed operating expenses
Operating income