Colt Carriage Company offers guided horse-drawn carriage rides through historic Charleston comma South Carolina. The carriage business is highly regulated by the city. Colt Carriage Company has the following operating costs during April: LOADING...(Click the icon to view the information.) During April (a month during peak season), Colt Carriage Company had 13 comma 500 passengers. Sixty percent of passengers were adults ($23 fare) while 40% were children ($15 fare). Requirements 1. Prepare the company's contribution margin income statement for the month of April. Round all figures to the nearest dollar. 2. Assume that passenger volume increases by 10% 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?

1) Colt Carriage Company

Income Statement

For the month ended April 202x

Revenues:

Variable costs:

Contribution margin                                        $169,155

Period costs:

Operating profit                                             $103,305

2) If the total amount of passengers increase by 10%, then all variable costs will increase by 10% except brokerage fees which would increase only by 6%. Revenues should also increase by 10%. Period costs should not change.

Contribution margin should increase by 10.29% and operating profit would increase by 16.81%.

Explanation:

since the information is not complete, I looked it up:

Revenues

13,500 passengers:

8,100 x $23 = $186,300

5,400 x $15 = $81,000

total $267,300

variable costs:

fees paid to the city 10% of total revenue

souvenirs $0.55 per passenger

brokerage fees 60% of total tickets x $1.40

carriage drivers $3.90 per passenger

fixed costs:

depreciation $2,900

horse leases $48,000

marketing expenses $7,350

payroll expenses $7,600

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