Answered step by step
Verified Expert Solution
Question
1 Approved Answer
During April (a month during peak season), Carter Carriage Company had 12,900 passengers. Seventy percent of passengers were adults ($21 fare) while 30% were
During April (a month during peak season), Carter Carriage Company had 12,900 passengers. Seventy percent of passengers were adults ($21 fare) while 30% were children ($13 fare). Read the requirements. 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.) Carter 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 Total variable expenses Less: Fixed expenses Leasing and boarding horses Non-carriage driver payroll expense Depreciation expense Other fixed operating expenses Operating income Data table Monthly depreciation expense on carriages and stable.. Fee paid to the City of Augusta..... Cost of souvenir set of postcards given to each passenger. Brokerage fee paid to independent ticket brokers (60% of tickets are issued through these brokers; 40% are sold directly by the Carter 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... 2,300 10% of ticket revenue $0.75/set of postcards $1.30/ticket sold by broker $ 52,000 $3.20 per passenger 7,850 Marketing, website, telephone, and other monthly fixed costs.. 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 13% 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? - 7,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started