=+4-18 K CVP exercises OBJECTIVE 1 The Magic Donut owns and operates six doughnut outlets in and around Melbourne. You are given the following corporate budget data for next year:

Revenues $10 000 000 Fixed costs $1 800 000 Variable costs $8 000 000 Variable costs change with respect to the number of doughnuts sold.

Required Calculate the budgeted profit for each of the following deviations from the original budget data. (Consider each case independently.)

1 a 10% increase in contribution margin, holding revenues constant