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.