Carter Carriage Company offers guided horse-drawn carriage rides through historic Sumter comma South Carolina. The carriage business is highly regulated by the city. Carter Carriage Company has the following operating costs during April: LOADING...(Click the icon to view the information.) During April (a month during peak season), Carter Carriage Company had 13 comma 400 passengers. Eighty percent of passengers were adults ($20 fare) while 20% were children ($12 fare). 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 20% 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?
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Ответ:
1) Carter Carriage Company
Income Statement
For the month ended April 202x
Revenues:
Adults passengers $214,400 Children $32,160 Total revenues $246,560Variable costs:
City fees $24,656Souvenirs $7,370 Brokerage fees $11,256 Carriage drivers $52,260 Total variable costs $95,542Contribution margin $151,018
Period costs:
Depreciation $2,900 Horse leases $48,000 Marketing expenses $7,350 Payroll expenses $7,600 Total period costs $65,850Operating profit $85,168
2) If the total amount of passengers increase by 20%, then all variable costs will increase by 20% except brokerage fees which would increase only by 12%. Revenues should also increase by 20%. Period costs should not change.
Contribution margin should increase by 20.6% and operating profit would increase by 36.5%.
Ответ:
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Explanation:
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