Question: 1. A 9% increase in contribution margin, holding 2. A 9% decrease in contribution margin, holding revenues constant revenues constant 3. A 4% increase in
Variable costs change based on the number of doughnuts se The Ultimate Donut owns and operates six doughnut outlets in and around Kansas City. You are given the following corporate budget data for next year: Revenues $ 10,500,000 Fixed costs $ 1,900,000 Variable costs $ 7,700,000 Requirement Compute the budgeted operating income for each of the folk deviations from the original budget data (Consider each cas independently.) (Click the icon to view the cases.) Begin by completing the table for the original information provided, then complete the table for each case, one at a time. (For amoun with a 50 balance, make sure to enter"0" in the appropriate cell.) Revenues 10500000 10500000 Variable costs 7700000 Contribution margin 2800000 Fixed costs 1900000 Budgeted operating income 900000 Original 10500000 N m 10500000 10500000 wi 9. Which of these alternatives yields the highest budgeted operating income? Explain why this is the Alternative yields the highest budgeted operating income because it has the highest increase in contribution margin without increasing fixed costs. it has the lowest variable costs
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
