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please help me solve this problem. Curt Carriage Company offers guided horse-drawn carriage rides through historic Augusta, Georgia. The carriage business is highly regulated by
please help me solve this problem.
Curt Carriage Company offers guided horse-drawn carriage rides through historic Augusta, Georgia. The carriage business is highly regulated by the city. Curt Camiage Company has the following operating costs during April: View the information. During April (a month during peak season), Curt Carriage Company had 12,700 passengers. Sixty percent of passengers were adults (\$22 fare) while 40% were children ( $14 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 20% 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 2 . Assume passenger volume increases by 20% in May. Which figures on the income staternent would you expect to change and by what percentage would they change? If passenger wolume increases by 20% in May, we would expect expenses to 20\%. This is because costs change in direct proportion to changes in volume. As a resul, the 20%. Which figures would remain the same as in April? Assuming that a 20% increase in volume is stll in the same relevant range, we would expect costs to femain at their prosent ievel. Information Step by Step Solution
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