Question: Variable costs change based on the number of doughnuts sold. The Amazing Donut owns and operates six doughnut outlets in and around Kansas City. You

 Variable costs change based on the number of doughnuts sold. TheAmazing Donut owns and operates six doughnut outlets in and around Kansas

Variable costs change based on the number of doughnuts sold. 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: Revenues $ 10,300,000 Fixed costs $ 1,500,000 Variable costs $ 7,700,000 Requirement Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently.) A (Click the icon to view the cases.) Begin by con fase, one at a time. (For amounts with a $0 balance, make sure to enter "O" in the appropriate cell.) A Cases - X Original 1. A 9% increase in contribution margin, holding revenues constant 2. A 9% decrease in contribution margin, holding revenues constant 3. A 3% increase in fixed costs 4. A 3% decrease in fixed costs 5. An 8% increase in units sold 6. An 8% decrease in units sold 7. A 9% increase in fixed costs and a 9% increase in units sold 8. A 3% increase in fixed costs and a 3% decrease in variable costs 9. Which of these alternatives yields the highest budgeted operating income? Explain why this is the case Enter any nu Print Print Done Done o parts Begin by completing the table for the original information provided, then complete the table for each case, one at a time. (For amounts with a $0 balance, make sure to enter "0" in the appropriate cell.) Contribution margin Budgeted operating income Revenues Variable costs Fixed costs Original - a mi t o 9. Which of these alternatives yields the highest budgeted operating income? Explain why this is the case. Alternative yields the highest budgeted operating income because

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!