Compute the budgeted operating income

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Reference no: EM132212955

Question: The Super Donut owns and operates six doughnut outlets in and round Kansas City. CVP exercises. The Super Donut owns and operates six doughnut outlets in and round Kansas City. You are given the following corporate budget data for next year:

Revenues	$10,000,000
Fixed costs	$ 1,800,000
Variable costs	$ 8,000,000

Variable costs change with respect to the number of doughnuts sold. Compute the budgeted operating income for each of the following deviations from the original budget data. Consider each case independently.)

1. A 10% increase in contribution margin, holding revenues constant

2. A 10% decrease in contribution margin, holding revenues constant

3. A 5% increase in fixed costs

4. A 5% decrease in fixed costs

5. An 8% increase in units sold

6. An 8% decrease in units sold

7. A 10% increase in fixed costs and a 10% increase in units sold

8. A 5% increase in fixed costs and a 5% decrease in variable costs

Reference no: EM132212955

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