Assume Scenario 3

1) Increasing Unit sold for Casual and Deluxe by 5%.

2) Red Oak Cost increasing by 3%, and Granit Cost increasing by 2%.

Exhibit 6-4 Effect of Changes in Budget Assumptions on Budgeted Operating Income for Stylistic Furniture Home Insert Page Layout Formulas Data Review View Assumptions Direct Material Cost Budgeted Operating Income 2 Units Sold Selling Price What-lf Scenario Change from Master Budget CasualDeluxe CasuaDeluxe Red Oak Granite Dollars 4 Master bue50,00010,000 $600 5 Scenario 1 6 Scenario 2 50,00010,000 50,00010,000 582 600 800 $7.00 $10.00 S4,860,000 776 800 $7.00 $10.00 $7.35$10.50 3,794,100 4,483,800 22% decrease 8% decrease Exhibit 6-4 Effect of Changes in Budget Assumptions on Budgeted Operating Income for Stylistic Furniture Home Insert Page Layout Formulas Data Review View Assumptions Direct Material Cost Budgeted Operating Income 2 Units Sold Selling Price What-lf Scenario Change from Master Budget CasualDeluxe CasuaDeluxe Red Oak Granite Dollars 4 Master bue50,00010,000 $600 5 Scenario 1 6 Scenario 2 50,00010,000 50,00010,000 582 600 800 $7.00 $10.00 S4,860,000 776 800 $7.00 $10.00 $7.35$10.50 3,794,100 4,483,800 22% decrease 8% decrease