u are analyzing two hospitality units for acquisition. Complete the analysis under stated condition. State a conclusion from your analysis.

Particulars

Last Year's Data

A

B

Sales

1000000

1000000

Variable Cost

400000

600000

Contribution

600000

400000

Fixed Costs

400000

200000

Income Before Income Taxes

200000

200000

Conditions:

a. Assume the sale increases by 20 %.

b. Assume the sale decreases by 20 %.