Exercises in Cost-Volume-Profit Relationships The Fresh Buy Grocers CorporaoO. 56.012

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tion owns and operates twelve supermarkets in and around Chicago. You are given the following corporate budget data for next year:

Sales $10,000,000 Fixed expenses 1,650,000 Variable expenses 8,200,000 Compute expected profit for each of the following deviations from budgeted data. (Consider each case independently.)

10 percent increase in total contribution margin

. 10 percent decrease in total contribution margin 5 percent increase in fixed costs 5 percent decrease in fixed costs 8 percent increase in sales volume 8 percent decrease in sales volume

. 10 percent increase in fixed costs and 10 percent increase in sales volume 5 percent increase in fixed costs and 5 percent decrease in variable costs lop1