subject
Business, 17.04.2020 17:07 allyssaharrisooy50au

The Incredible Donut owns and operates six doughnut outlets in and around Kansas City.

You are given the following corporate budget data for next year:

Revenue Variable Cost Contribution Margin Fixed Cost Budgeted Operating Income
10,400,000 7,900,000 2,500,000 2,100,000
Variable costs change based on the number of doughnuts sold.

Required:

Compute the budgeted operating income for each of the following deviations from the original budget data.

(Consider each case independently)

1. An 11% increase in contribution margin, holding revenues constant.

2. An 11% decrease in contribution margin, holding revenues constant.

3. A 4% increase in fixed costs.

4. A 4% decrease in fixed costs.

5. A 7% increase in units sold.

6. A 7% decrease in units sold.

7. An 11% increase in fixed costs and a 11% increase in units sold.

8. A 4% increase in fixed costs and a 4% decrease in variable costs.

9. Which of these alternatives yields the highest budgeted operating income?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 14:30
)murphy was consuming 100 units of x and 50 units of y . the price of x rose from 2 to 3. the price of y remained at 4. (a) how much would murphy’s income have to rise so that he can still exactly afford 100 units of x and 50 units of y ? g
Answers: 1
question
Business, 22.06.2019 01:30
Someone knows the answer i need in the exam
Answers: 2
question
Business, 22.06.2019 04:00
Match the type of agreements to their descriptions. will trust living will prenuptial agreement
Answers: 2
question
Business, 22.06.2019 08:30
Acompany recorded a check in its accounting records as $87. however, the check was actually written for $78 and it cleared the bank as $78. what adjustment is needed to the personal statement? a. decrease by $9 b. increase by $9 c. decrease by $18 d. increase by $9
Answers: 2
You know the right answer?
The Incredible Donut owns and operates six doughnut outlets in and around Kansas City.

Y...
Questions
question
Mathematics, 12.11.2020 08:30
question
Physics, 12.11.2020 08:30
question
Health, 12.11.2020 08:30