Question
City Bagel operates a bagel store in Niagara Falls. The owner has provided the following budgeted data for next year. Revenue $11,393 Fixed Costs $3,565
City Bagel operates a bagel store in Niagara Falls. The owner has provided the following budgeted data for next year.
| Revenue | $11,393 |
| Fixed Costs | $3,565 |
| Variable Costs (depends on the # of bagels sold) | $7,961 |
For each of the following scenarios, determine the dollar impact on City Bagel. 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 7% increase in fixed costs.
| Revenue: | AnswerDecrease byIncrease byNo change
| $Answer |
| Variable Costs: | AnswerDecrease byIncrease byNo change
| $Answer |
| Fixed Costs: | AnswerDecrease byIncrease byNo change
| $Answer
|
| Contribution Margin: | AnswerDecrease byIncrease byNo change
| $Answer |
| Budgeted Operating Profit: | AnswerDecrease byIncrease byNo change
| $Answer
|
ii. A 15% increase in contribution margin, but holding revenue constant.
| Revenue: | AnswerDecrease byIncrease byNo change
| $Answer |
| Variable Costs: | AnswerDecrease byIncrease byNo change
| $Answer
|
| Fixed Costs: | AnswerDecrease byIncrease byNo change
| $Answer |
| Contribution Margin: | AnswerDecrease byIncrease byNo change
| $Answer
|
| Budgeted Operating Profit: | AnswerDecrease byIncrease byNo change
| $Answer
|
iii. A 20% increase in fixed costs and 13% increase in units sold.
| Revenue: | AnswerDecrease byIncrease byNo change
| $Answer
|
| Variable Costs: | AnswerDecrease byIncrease byNo change
| $Answer
|
| Fixed Costs: | AnswerDecrease byIncrease byNo change
| $Answer
|
| Contribution Margin: | AnswerDecrease byIncrease byNo change
| $Answer
|
| Budgeted Operating Profit: | AnswerDecrease byIncrease byNo change
| $Answer
|
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