Data table

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Revenues	$10,900,000
Fixed costs	$1,500,000
Variable costs	$7,700,000

Cases

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1.	A 10% increase in contribution margin, holding revenues constant
2.	A 10% decrease in contribution margin, holding revenues constant
3.	A 4% increase in fixed costs
4.	A 4% decrease in fixed costs
5.	A 9% increase in units sold
6.	A 9% decrease in units sold
7.	A 10% increase in fixed costs and a 10% increase in units sold
8.	A 4% increase in fixed costs and a 4% decrease in variable costs
9.	Which of these alternatives yields the highest budgeted operating income? Explain why this is the case.

The DonutSupreme owns and operates six doughnutoutlets in and around KansasCity.

You are given the following corporate budget data for next year:

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Part 1

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.)

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Part 1

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 "0" in the appropriate cell.)

			Contribution		Budgeted
	Revenues	Variable costs	margin	Fixed costs	operating income
Original	10,900,000	7,700,000		1,500,000