Pizza Land operates a pizza franchise in LA. The owner has provided the following budgeted data for next year. Revenue $11,838,000 Fixed Costs $3,198,000 Variable

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Pizza Land operates a pizza franchise in LA. The owner has provided the following budgeted data for next year.

Revenue $11,838,000
Fixed Costs $3,198,000
Variable Costs (depends on the # of pizzas sold) $7,309,000

For each of the following scenarios, determine the dollar impact on Pizza 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 Decrease byIncrease b yNo 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 Income: AnswerDecrease byIncrease byNo change $Answer

ii. A 13% 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 Income: AnswerDecrease byIncrease byNo change $Answer

iii. A 15% increase in fixed costs and 14% 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 Income: AnswerDecrease byIncrease byNo change $Answer

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To determine the dollar impact on Pizza Land for each given scenario we need to perform the following calculations stepbystep Scenario i A 5 increase in fixed costs 1 Calculate the new fixed costs Ori... View full answer

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