CVP exercises. The fiuper Doughnut owns and operates six doughnut outlets in and around Quebec City. You

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CVP exercises. The fiuper Doughnut owns and operates six doughnut outlets in and around Quebec City. You are given the following corporate budget data for next year:

Revenues $12,000,000 Fixed costs 2,040,000 Variable costs 9,840,000 Variable costs change with respect to the number of doughnuts sold.

Required Compute the budgeted operating income for each of the following deviations from the origi¬

nal budget data. (Consider each case independently.)

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. An 8% increase in units sold 6. An 8% decrease in units sold 7. A 10% increase in fixed costs and 10% increase in units sold 8. A 5% increase in fixed costs and 5% decrease in variable costs

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Cost Accounting A Managerial Emphasis

ISBN: 9780131971905

4th Canadian Edition

Authors: Charles T. Horngren, George Foster, Srikant M. Datar, Howard D. Teall

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