Question: A contribution margin statement for Lammington Lodge is shown below. $ Revenue 500,000 Variable costs 300,000 Contribution margin 200,000 Fixed costs 150,000 Net profit 50,000

A contribution margin statement for Lammington Lodge is shown below. $ Revenue 500,000 Variable costs 300,000 Contribution margin 200,000 Fixed costs 150,000 Net profit 50,000 Required: a) Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the contribution margin statement. (4 Marks) b) Calculate and comment on the hotel's operating leverage when revenue is $500,000
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