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Required information Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Required $4$

Suppose the hotel's revenue declines by $15$ percent. Use the contribution$-$margin percentage to calculate the resulting

decrease in net income. Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

What is the hotel's operating leverage factor when revenue is $$522,000?$

Operating leverage factor Use the operating leverage factor to calculate the increase in net income resulting from a $20$ percent increase in sales

revenue.

$[$The following information applies to the questions displayed below.$]$

A contribution income statement for the Nantucket Inn is shown below. $($Ignore income taxes.$)$

Required:

Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the income

statement.

Suppose the hotel's revenue declines by $15$ percent. Use the contribution$-$margin percentage to calculate the resulting decrease in

net income.

What is the hotel's operating leverage factor when revenue is $$522,000?$

Use the operating leverage factor to calculate the increase in net income resulting from a $20$ percent increase in sales revenue.

Complete this question by entering your answers in the tabs below.

Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the income

statement.

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