Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer all 5 boxes correctly pls The Marvelous Donut owns and operates six doughnut outlets in and around Kansas City. You are given the following

answer all 5 boxes correctly pls
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Marvelous Donut owns and operates six doughnut outlets in and around Kansas City. You are given the following corporate budget data for next year: Revenues $ 10,300,000 Fixed costs $ 1,600,000 Variable costs $ 7,700,000 Variable costs change based on the number of doughnuts sold Requirement Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently) (Click the icon to view the cases.) Cases 1. A 12% increase in contribution margin, holding revenues constant 2. A 12% decrease in contribution margin, holding revenues constant 3. A 3% increase in fixed costs 4. A 3% decrease in fixed costs 5. A 7% increase in units sold 6. A 7% decrease in units sold 7. A 12% increase in fixed costs and a 12% increase in units sold 8. A 3% increase in fixed costs and a 3% decrease in variable costs 9. Which of these alternatives yields the highest budgeted operating income? Explain why this is the case Begin by completing the table for the original information provided, then complete the table for each case one at a time. (For amounts with a $0 balance, make sure to enter "o" in the appropriate cell) Contribution Budgeted Revenues Variable costs margin Fixed costs operating income Originals 10,300,000 5 7.700,000 $ 2.600 000 $ 1 600,000 $ 1 000 000 Revenues Variable costs from the original hud margin Fixed costs operating income 2,600,000 $ 1,600,000 $ 1,000,000 Original $ 10,300,000 $ 7,700,000 $ 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Committee Handbook

Authors: Louis Braiotta Jr.

3rd Edition

0471345768, 978-0471345763

More Books

Students also viewed these Accounting questions

Question

What does AUC stand for?

Answered: 1 week ago

Question

Does it avoid use of underlining?

Answered: 1 week ago