ezto.mheducation.com iii 0 Content Course Hero Question1

5 points eBook Print Graw Hill Content Course Hero Exercise 7-31 0 976, 624, 416,000 208, 0 0/0 a ezto.mheducation.com Saved Question 1 - Exercise 7-31 - Connect Rihanna - Man Down - YouTube Help Save & Exit Submit Check my work A contribution income statement for the Nantucket Inn is shown below. (Ignore income taxes.) Revenue Less: Variable expenses Contribution margin Less: Fixed expenses Net income Required: 1. Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the income statement. 2. Suppose the hotel's revenue declines by 30 percent. Use the contribution-margin percentage to calculate the resulting decrease in net income. 3. What is the hotel's operating leverage factor when revenue is $1,600,000? 4. Use the operating leverage factor to calculate the increase in net income resulting from a 35 percent increase in sales revenue. Complete this question by rs in the tabs below. Assessment Tool iFrame Required 1 Required 2 Required 3 Required 4 Show the hotel's cost structure by indicating the percentage of the hotel's revenue represented by each item on the income statement. NANTUCKET INN Contribution Income Statement Revenue Variable expenses Contribution margin Fixed expenses Net income Amount 976,000 624,000 208,000 Percent 1 1 Next