$1$ Assignment

Question $5,$ E$3-24($similar to$)$

HW Score: $49\mathrm{.}38\%,49\mathrm{.}38$ of $100$ points

Part $7$ of $10$

Points: $2\mathrm{.}87$ of $5$

The Amazing Donut owns and operates six doughnut outlets in and around Kansas City. You are given the following corporate budget data for next year

$($Click the icon to view the corporate budget data.$)$

Cases

A $10\%$ increase in contribution margin, holding revenues constant

A $10\%$ decrease in contribution margin, holding revenues constant

A $4\%$ increase in fixed costs

A $4\%$ decrease in fixed costs

A $7\%$ increase in units sold

A $7\%$ decrease in units sold

A $10\%$ increase in fixed costs and a $10\%$ increase in units sold

A $4\%$ increase in fixed costs and a $4\%$ decrease in variable costs

Which of these alternatives yields the highest budgeted operating income? Explain why this is the case.

$"0"$ in the appropriate cell.$)$

Done