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A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.) Revenue Less: Variable expenses Contribution margin Less: Fixed expenses Net Income $1,600,000 940, eee $ 660,000 480,000 $ 180,000 Required: 1. Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent, and fixed expenses increase by 50 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 $120.000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent and fixed expenses increase hy onercent P 01 Next bere to search o tha Required: 1. Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent, and fixed expenses increase by 50 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 $120,000 percent Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a contribution income statement if the hotel's volume of activity Increases by 25 percent, and fixed expenses increase by 50 percent NANTUCKET INN Contribution Income Statement Revenue Less: Variable expenses Contribution margin (105) Less Foxed expenses 5 S Required 2 >

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