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 hotels cost structure by indicating the percentage of the hotels revenue represented by each item on the contribution margin statement. (4 Marks)

b) Calculate and comment on the hotels operating leverage when revenue is $500,000. (3 Marks)