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Variable costs change based on the number of subs sold. The Delightful Deli owns and operates six stores in and around Minneapolis. You are given
Variable costs change based on the number of subs sold. The Delightful Deli owns and operates six stores in and around Minneapolis. You are given the following corporate budget data for next year: (Click the icon to view the corporate budget data.) Requirement Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently.) (Click the icon to view the cases.) 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 operating income Revenues Variable costs margin Fixed costs Original Revenues Fixed costs Variable costs $ 10,500,000 $ 1,600,000 $ 8,000,000 1. A 10% increase in contribution margin, holding revenues constant 2. A 10% decrease in contribution margin, holding revenues constant 3. A 3% increase in fixed costs 4. A 3% 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 3% increase in fixed costs and a 3% 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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