Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent, and fixed expenses increase by 50 percent. Complete this question by entering your answers in the tabs below. 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 $200,000. Exercise 7-32 Continuation of Preceding Exercise (LO 7-4, 7-7) A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.) Required: 1. Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent, and fixed expenses increase by 5 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 $200,000