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esdes MANAGEMENT ACCOUNTING Dr. Antonio BAYEH CLASSWORK 2 Case 1. Wynwood Company Wynwood Company owns and operates 20 puff pastry outlets in and around Dublin.

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esdes MANAGEMENT ACCOUNTING Dr. Antonio BAYEH CLASSWORK 2 Case 1. Wynwood Company Wynwood Company owns and operates 20 puff pastry outlets in and around Dublin. You are given the following corporate budget data for next year: Revenues $25,000,000 Fixed costs $4,480,000 Variable costs $ 19,500,000 Variable costs change based on the number of puff pastries sold. Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently). Required: 1. A 15% increase in contribution margin, holding revenues constant 2. A 15% decrease in contribution margin, holding revenues constant 3. A 10% increase in fixed costs 4. A 10% decrease in fixed costs 5. A 12% increase in units sold 6. A 12% decrease in units sold 7. An 8% increase in fixed costs and an 8% increase in units sold 8. A 6% increase in fixed costs and a 6% decrease in variable costs 9. Which of these alternatives yields the highest budgeted operating income? Explain why this is the case

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