Question: 1. CVP analysis (10 Points): Candy would like a CVP analysis done with her estimated numbers. Revenues Fixed Cost Variable Costs $289,800 $115,300 $81,972 Variable

 1. CVP analysis (10 Points): Candy would like a CVP analysis

1. CVP analysis (10 Points): Candy would like a CVP analysis done with her estimated numbers. Revenues Fixed Cost Variable Costs $289,800 $115,300 $81,972 Variable costs change based on how many dozen doughnuts are sold. Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently.) Required: 1. A 10% increase in contribution margin, holding revenues constant 2. A 10% decrease in contribution margin, holding revenues constant 3. A 5% increase in fixed costs 4. A 5% decrease in fixed costs 5. A 5% increase in units sold 6. A 5% decrease in units sold 7. A 10% increase in fixed costs and a 10% increase in units sold 8. A 5% increase in fixed costs and a 5% decrease in variable costs 9. Which of these alternatives yields the highest budgeted operating income? 10. Explain why this is the case

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