4 5 6 7 8 9 AB C D E G The Deli-Sub Shop owns and operates six stores in and around Minneapolis. You are given the following corporate budget data for next year: Revenues Fixed costs Variable costs $11,000,000 $3,000,000 $7,500,000 10 Variable costs change based on the number of subs sold. 11 12 13 14 Use the blue shaded areas on the ENTERANSWERS tab for inputs. 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 copy/paste from the Instructions tab you will be marked wrong. 15 Requirements Compute the budgeted operating income for each of the following deviations from the original 16 budget data. (Consider each case independently.) 17 18 19 a. b. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted. Refer to the budgeted operating income based on the original budget data in all calculations. 1 Determine the budgeted operating income based on the original budget data. 2 A 10% increase in contribution margin, holding revenues constant 3 A 10% decrease in contribution margin, holding revenues constant 20 21 22 4 A5% increase in fixed costs 23 5 A5% decrease in fixed costs 24 6 A5% increase in units sold 25 7 A5% decrease in units sold 26 8. A 10% increase in fixed costs and a 1096 increase in units sold 27 9 A 5% increase in fixed costs and a 5% decrease in variable costs 28 10 Which of these alternatives yields the highest budgeted operating income? D E F 1 1. Determine the budgeted operating income based on the original budget data. (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 copy/paste from 2 the Instructions tab you will be marked wrong.) 3 4 Revenues 5 Variable costs 6 Contribution margin 7 Fixed costs 8 Budgeted operating income 9 10 2. A 10% increase in contribution margin, holding revenues constant (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 copy/paste from 11 the Instructions tab you will be marked wrong.) 12 13 Revenues 14 Variable costs 15 Contribution margin 16 Fixed costs 17 Budgeted operating income G INSTRUCTIONS Ready Accessibility Investigate Type here to search ENTERANSWER + 99 B 19 3. A 10% decrease in contribution margin, holding revenues constant D E (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 copy/paste from 20 the Instructions tab you will be marked wrong.) 21 22 Revenues 23 Variable costs 24 Contribution margin 25 Fixed costs 26 Budgeted operating income 27 28 4. A 5% increase in fixed costs (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 copy/paste from 29 the Instruction tabs you will be marked wrong.) 30 31 Revenues 32 Variable costs 33 Contribution margin 34 Fixed costs 35 Budgeted operating income INSTRUCTIONS ENTERANSWER Ready Accessibility Investigate Type here to search + O 37 5. A 5% decrease in fixed costs (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 copy/paste from 38 the Instructions tab you will be marked wrong.) 39 40 Revenues 41 Variable costs 42 Contribution margin 43 Fixed costs 44 Budgeted operating income 45 46 6. A 5% increase in units sold (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 copy/paste from 47 the Instructions tab you will be marked wrong.) 48 49 Revenues 50 Variable costs 51 Contribution margin 52 Fixed costs 53 Budgeted operating income INSTRUCTIONS Ready Accessibility Investigate Type here to search ENTERANSWER + O 55 7. A 5% decrease in units sold B C D E (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 copy/paste from 56 the Instructions tab you will be marked wrong.) 57 58 Revenues 59 Variable costs 60 Contribution margin 61 Fixed costs 62 Budgeted operating income 63 64 8. A 10% increase in fixed costs and a 10% increase in units sold (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 copy/paste from 65 the Instructions tab you will be marked wrong.) 66 67 Revenues 68 Variable costs 69 Contribution margin 70 Fixed costs 71 Budgeted operating income INSTRUCTIONS Ready Accessibility Investigate Type here to search H ENTERANSWER 270 99- B D E 73 9. A 5% increase in fixed costs and a 5% decrease in variable costs (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 copy/paste from 74 the Instructions tab you will be marked wrong.) 75 76 Revenues 77 Variable costs 78 Contribution margin 79 Fixed costs 80 Budgeted operating income 81 82 10. Which of these alternatives yields the highest budgeted operating income? 83 Alternative with highest 84 budgeted operating income 85 86 87 88 89 90 INSTRUCTIONS Ready Accessibility Investigate ENTER