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Revenue Less: Variable expenses Contribution margin Less: Fixed expenses Net income $2,500,000 1,750,000 $ 750,000 600,000 $ 150,000 Required: 1. Show the hotel's cost structure

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Revenue Less: Variable expenses Contribution margin Less: Fixed expenses Net income $2,500,000 1,750,000 $ 750,000 600,000 $ 150,000 Required: 1. Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the income statement 2. Suppose the hotel's revenue declines by 20 percent. Use the contribution-margin percentage to calculate the resulting decre net income. 3. What is the hotel's operating leverage factor when revenue is $2,500,000? 4. Use the operating leverage factor to calculate the increase in net income resulting from a 25 percent increase in sales revenu Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Suppose the hotel's revenda declines by 20 percent. Use the contribution-margin percentage to calculate the resulting decrease in net income. Decrease in net income Revenue Less: Variable expenses Contribution margin Less: Fixed expenses Net Income $2,500,000 1.750,000 $ 750,000 600,000 $ 150,000 Required: 1. Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the income statement 2. Suppose the hotel's revenue declines by 20 percent. Use the contribution-margin percentage to calculate the resulting decrease net income 3. What is the hotel's operating leverage factor when revenue is $2,500,000? 4. Use the operating leverage factor to calculate the increase in net income resulting from a 25 percent increase in sales revenue. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Requided 3 Required 4 Required 3 What is the hotel's operating leverage factor when revenue is $2,500,000? Operating leverage factor Saved 4 Revenge Lost Variable expenses Contribution margin Lost Fixed expenses Net income $2,500,000 1,750,000 $750,000 600,000 $ 150,000 10 points statement eBook Required: 1. Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the Income 2. Suppose the hotel's revenue declines by 20 percent. Use the contribution-margin percentage to calculate the resulting decrea net income. 3. What is the hotel's operating leverage factor when revenue is $2,500,000? 4. Use the operating leverage factor to calculate the increase in net income resulting from a 25 percent increase in sales revenue Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required Use the operating leverage factor to calculate the increase in net income resulting from a 25 percent increase in sales revenue Increase in net income

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