ces, break-even pun and total-revenue o eam play to break ee os. 12-game season an Exercise 7-31 Hotel and Restaurant; Cost Structure and Operating eam have to charge in A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.) Revenue $500,000 (LO 7-2,7-4,7-8) Less Variable expenses 300,000 the rapidly changin ons during the priorge (Ignore income ta Contribution margin $200.000 Less: Fixed expenses 150,000 Net income 50.000 Required: 1. Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the income statement. 2. Suppose the hotel's revenue declines by 15 percent. Use the contribution-margin percentage to cal- culate the resulting decrease in net inco what is the hotel's operating caiculate the increase in net income resulting from a 20 per- 1 me when revenue is $500,000? 4. r t cent increase in sales revenue ent for the comp ng the prior year ge increase in net irement (3)7 Why profit analysis. Sales Commi nual fixed esxp nt sales mi