EX 7-32 (Static) Continuation of Preceding Exercise (LO 7-4, 7-7) Prepare a new contribution income statement for the Nantucket Inn in each of the following independent situations. (Ignore income taxes.) Required: 1. Prepare a contribution income statement if the hotel's volume of activity increases by 20 percent, and fixed expenses increase by 40 percent. 2. Prepare a contribution income statement if the ratio of variable expenses to revenue doubles. There is no change in the hotel's volume of activity. Fixed expenses decline by $25,000.

EX 7.32 (Static) Continuation of Preceding Exercise (LO 7.4, 7.7) Prepare a new contribution income statement for the Nantucket Inn in each of the following independent situations. (Ignore income taxes) Required: 1. Prepare a contribution income statement if the hotel's volume of activity increases by 20 percent, and fixed expenses increase b 40 percent 2. Prepare a contribution income statement if the ratio of variable expenses to revenue doubles. There is no change in the hotel's volume of activity. Fixed expenses decline by $25,000. Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.) Complete this question by entering your answers in the tabs below. Prepare a contribution income statement if the hotel's volume of activity increases by 20 percent, and fixed expenses increase by 40 percent. Prepare a contribution income statement if the ratio of variable expenses to revenue doubles. There is no change in the hotel's volume of activity. Fixed expenses decline by $25,000