Cranmore Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The carriage business is highly regulated by the city. Cranmore Carriage Company has the following operating costs during April:

During April (a month during peak season), Cranmore Carriage Company had 13,030 passengers. Eighty-five percent of passengers were adults ($23 fare) while 15% were children ($15 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 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?

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Monthly depreciation expense on carriages and Fee paid to the City of Charleston. Cost of souvenir set of postcards given to each passenger Brokerage fee paid to independent ticket brokers (60% of tickets are issued through these brokers, 40% are sold directly by the Cranmore Carriage Company) Monthly cost of leasing and boarding the horses Carriage drivers (tour guides) are paid on a per passenger bass Monthly payroll costs of non-tour guide employees Marketing, website, telephone, and other monthly fixed costs $2,200 15% of ticket revenue $0.75/set of postcards $1.40/ticket sold by broker $46,000 S3.20 per passenger $7,550 $7,100