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1 Compute the budgeted operating income for each of the following deviations from the original budget data. ( Consider each case independently. ) a .
Compute the budgeted operating income for each of the following deviations from the original budget data. Consider each case independently.
a Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.
b Refer to the budgeted operating income based on the original budget data in all calculations.
Always use cell references and formulas where appropriate to receive full credit. Cell references and formulas should be based on the original data. If you copypaste from the Instructions tab or if you type the numbers in you will be marked wrong.
Alternatives:
Determine the budgeted operating income based on the original budget data.
A increase in contribution margin, holding revenues constant.
A decrease in contribution margin, holding revenues constant.
A increase in fixed costs.
A decrease in fixed costs.
A increase in units sold.
A decrease in units sold.
A increase in fixed costs and a increase in units sold.
A increase in fixed costs and a decrease in variable costs.
Which of these alternatives yields the highest budgeted operating income?
Direct Materials FU Direct Manufacturing Labor FU
Price variance
Efficiency variance
Flexiblebudget variance
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