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Charleston Carriage Company offers guided horse-drawn carriage rides through historic Athens, Georgia. The carriage business is highly regulated by the city. Charleston Carriage Company has
Charleston Carriage Company offers guided horse-drawn carriage rides through historic Athens, Georgia. The carriage business is highly regulated by the city. Charleston Carriage Company has the following operating costs during April: (Click the icon to view the information.) During April (a month during peak season), Charleston Carriage Company had 13,000 passengers. Sixty percent of passengers were adults ($22 fare) while 40% were children ($14 fare). Read the requirements Requirement 1. Prepare the company's contribution margin income statement for the month of April. Round I figures to the nearest dollar. (Do not round interim calculations amounts. Round all amounts input in the table to the nearest dollar Charleston Carriage Company Contribution Margin Income Statement For the Month Ended April 30 - X Data table Less: $ 2,400 20% of ticket revenue $0.70/set of postcards Monthly depreciation expense on carriages and stable Fee pald to the City of Athens............ Cost of souvenir set of postcards glven to each passenger. Brokerage fee pald to Independent ticket brokers (60% of tickets are issued through these brokers; 40% are sold directly by the Charleston Carriage Company) Monthly cost of leasing and boarding the horses.............. Carriage drivers (tour guides) are paid on a per passenger basis Monthly payroll costs of non-tour guide employees Marketing, website, telephone, and other monthly fixed costs $1.70/ticket sold by broker $ 51,000 $3.40 per passenger $ 7.900 $ 7,050 Less: Print Done 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 19% 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? Print Done
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