1st blank (all or few or most ) 2nd blank (fixed or mixed or variable) 3rd blank

Question

1st blank (all or few or most )

2nd blank (fixed or mixed or variable)

3rd blanke (decease by or increse by )

4th blank(fixed or mixed or variable)

5th blank (contribution margin or fixed expense or operting income)

6th blanke (decease by or increse by)

7th blanke (all or fer or most)

8th blanke (fixed or mixed or variable)

Carlton Carriage Company offers guided horse-drawn carriage rides through historic Charleston, South Carolina. The carriage business is highly regulated by the city. Carlton Carriage Company has the following operating costs during April (Click the icon to view the information.) During April a month during peak season Carlton Carriage Company had 13.020 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 final figures to the nearest dollar 2. Assume that passenger volume increases by 13% 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? Carlton Carriage Company Contribution Margin Income Statement For the month ended April 30 Data Table Monthly depreciation expense on carriages ad stable . . . . . . . . . . . . . . . . . . . . .. . . . . 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 2,100 15% of ticket revenue S0.75/set of postcards through these brokers: 40% are sold directly by the Carlton Carriage Company). . . . . . . Monthly cost of leasing and boarding the horses. . . . . . . . . . . . . . . .. . . . . .. . . . . . Carriage drivers (tour guides) are paid on a per passenger basis... . . .. . . . . . . . . . . . . . Monthly payroll costs of non-tour guide employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marketing, Web site, telephone, and other monthly fixed costs . . . . . . . . . . . . . . . . . . . . $1.70/ticket sold by broker 45,000 $3.70 per passenger 7,650 7,400 Print Done

Explanation / Answer

adult = 13,020 * .85= 11,067 * $23 = $254,541
child = 13,020 * .15 = 1,953 * $15 = $29,295

Contribution margin income statement

Sales revenue $254,541 + $29,295 = $283,836

less variable expense

Fees paid to city .15 * 283,836 = $42575.4
Complementary postcards $.75*13,020 = $9,765
Brokerage fees 13,020 *.60 * $1.70 = $13,280.4
carraige driver wages 13,020 *.40 *3.70= $19,269.6

Total variable expense $84890.4

Contribution margin $198,945.6

Fixed expenses
Depreciation expense $2,100
Other fixed expenses $7,400
Leasing and boarding horses $45,000
Payroll expense $7,650

Total fixed expenses $ 62,150

Operating income $136,795.6

b) 1st all
   2nd variable expense
3rd increased by
   4th Variable cost
   5th Contribution margin
6th Increase by
7th all
8th Fixed cost

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.