Charleston Carriage Company Offers Guided Horsedrawn Carriage Rides Through Historic

Charleston Carriage Company offers guided horse-drawn carriage rides through historic Greenville, South Carolina. The carriage business is highly regulated by the city. Charleston Carriage Company has the following operating costs during April:
Monthly depreciation expense on carriages and stable ………………………………. $2,900
Fee paid to the City of Greenville ……………………………………… 10% of ticket revenue
Cost of souvenir set of postcards given to each passenger …….. $0.55/set of postcards
Brokerage fee paid to independent ticket brokers (60% of tickets are issued through these brokers; 40% are sold directly by the
Charleston Carriage Company) ………………………………….. $1.40/ticket sold by broker
Monthly cost of leasing and boarding the horses ……………………………………. $48,000
Carriage drivers (tour guides) are paid on a per passenger basis ..$3.90 per passenger
Monthly payroll costs of non-tour guide employees …………………………………. $7,600
Marketing, website, telephone, and other monthly fixed costs ………………….. $7,350
During April (a month during peak season), Charleston Carriage Company had 13,400 passengers.
Eighty percent of passengers were adults ($20 fare) while 20% were children ($12 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 19% 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?

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