Prepare a contribution income statement if the hotels

Assignment Help Accounting Basics

Reference no: EM13482415

A contribution income statement for the La Jolla Inn is shown below. (Ignore income taxes.)

Revenue

2,400,000

Less: Variable expenses

1,260,000

Contribution margin

1,140,000

Less: Fixed expenses

720,000

Net income

420,000

Prepare a contribution income statement if the hotel's volume of activity increases by 25 percent, and fixed expenses increase by 50 percent.

2.	Prepare a contribution income statement if the ratio of variable expenses to revenue doubles. There is no change in the hotel's volume of activity. Fixed expenses decline by $280,000.

Reference no: EM13482415

Questions Cloud

Compute blues materials price variance compute the : the cost accountant for blue pharmaceuticals has informed you that the companys materials quantity variance for the

How much before-tax income must the firm earn to make an : power grid engineering associates inc. provides consulting services to commercial electric utilities. the consulting

Classify each of the preceding costs as product costs or : the following is a list of costs incurred by several business organizationsa telephone cable for a telephone

Digdug corporation had outstanding checks totaling 5400 on : digdug corporation had outstanding checks totaling 5400 on its june bank reconciliation. in july digdug issued checks

Prepare a contribution income statement if the hotels : a contribution income statement for the la jolla inn is shown below. ignore income

Assume that the new plant is constructed and that next year : darringer products manufactures recreational equipment. one of the companys products a skateboard sells for 42.00. the

How long would it take from the date of the initial : a company that manufactures ultrasonic wind sensors invested 1.5 million 2 years ago to acquire part ownership in an

An investment of 600000 increased to 1000000 over a 5-year : an investment of 600000 increased to 1000000 over a 5-year period. what was the rate of return on the

Danson iron works inc manufactures angular contact ball : danson iron works inc. manufactures angular contact ball bearings for pumps that operate in harsh environments. if the

User Account

All Pages