Question

Question Help Carson Carriage Company offers guided horse-drawn carriage rides through historic Athens, Georgia. The carriage business is highly regulated by the city. Carson Carriage Company has the following operating costs during April: Click the icon to view the information.) During April (a month during peak season), Carson Carriage Company had 12,800 passengers. Eighty percent of passengers were adults ($24 fare) while 20% were children ($16 faro) Requirements 1. Prepare the company's contribution margin income statement for the month of April. Round all figures to the nearest dollar. 2. Assume that passenger volume increases by 12% in May. Which figures on the income statement would you expect to change, and by what percentage would they change? Which figures would remain the same as in April? Requirement 1. Prepare the company's contribution margin income statement for the month of April. Round all figures to the nearest dollar. (Do not round interim calculations or amounts. Round all amounts input in the table to the nearest dollar.) Carson Carriage Company Contribution Margin Income Statement For the Month Ended April 30 Sales revenue Less: Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Contribution Margin Income Statement
Sales Revenue	286,720
Less: Variable costs	130,688
Contribution Margin	156,032
Less: Fixed costs	68,250
Operating Income	87,782
Expect sales and variable expenses to increase by 12%, Variable cost changes in direct proportion
The Contribution Margin would also increase by 12%
Fixed costs to remain same at present level

в Α 1 Contribution Margin Income Statement 2 Sales Revenue 3 Less: Variable costs 4 Contribution Margin 5 Less: Fixed costs 6 Operating Income 7 8 Expect sales and variable expenses to increase by 12%, Variable cost changes in direct proportion 9 The Contribution Margin would also increase by 12% =12800*80%*24+12800*20%*16 |=B2*20%+0.95*12800+12800*60%*1.8+3.7*12800 =B2-B3 =2100+51000+7800+7350 =B4-B5 10 11 Fixed costs to remain same at present level 12.