Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bagel Land operates a bagel store in Niagara Falls. The owner has provided the following budgeted data for next year. Revenue $ 1 1 ,

Bagel Land operates a bagel store in Niagara Falls. The owner has provided the following budgeted data for next year.
Revenue $11,259
Fixed Costs $3,487
Variable Costs (depends on the # of bagels sold) $7,464
For each of the following scenarios, determine the dollar impact on Bagel Land.
Consider each scenario independently.
Do not enter dollar signs or commas in the input boxes.
Round all answers to the nearest whole number. Enter all values as positive values. Do not use the negative sign.
i. A 5% increase in fixed costs.
Revenue: Answer
No change
$Answer
0
Variable Costs: Answer
No change
$Answer
0
Fixed Costs: Answer
Increase by
$Answer
174
Contribution Margin: Answer
No change
$Answer
0
Budgeted Operating Profit: Answer
Decrease by
$Answer
174
ii. A 10% increase in contribution margin, but holding revenue constant.
Revenue: Answer
No change
$Answer
0
Variable Costs: Answer
Decrease by
$Answer
746
Fixed Costs: Answer
No change
$Answer
0
Contribution Margin: Answer
Increase by
$Answer
4175
Budgeted Operating Profit: Answer
Increase by
$Answer
iii. A 18% increase in fixed costs and 11% increase in units sold.
Revenue: Answer
Increase by
$Answer
Variable Costs: Answer
Increase by
$Answer
Fixed Costs: Answer
Increase by
$Answer
Contribution Margin: Answer
Increase by
$Answer
Budgeted Operating Profit: Answer
Decrease by
$Answer

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

Step: 3

blur-text-image

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

Petroleum Accounting: Principles, Procedures; And Issues

Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou

8th Edition

0940966328, 978-0940966321

More Books

Students also viewed these Accounting questions

Question

What is the relationship between quartiles and percentiles?

Answered: 1 week ago