The Incredible Donut owns and operates six doughnut outlets in and around Kansas City.

You are given the following corporate budget data for next year:

Revenue Variable Cost Contribution Margin Fixed Cost Budgeted Operating Income
10,400,000 7,900,000 2,500,000 2,100,000
Variable costs change based on the number of doughnuts sold.

Required:

Compute the budgeted operating income for each of the following deviations from the original budget data.

(Consider each case independently)

1. An 11% increase in contribution margin, holding revenues constant.

2. An 11% decrease in contribution margin, holding revenues constant.

3. A 4% increase in fixed costs.

4. A 4% decrease in fixed costs.

5. A 7% increase in units sold.

6. A 7% decrease in units sold.

7. An 11% increase in fixed costs and a 11% increase in units sold.

8. A 4% increase in fixed costs and a 4% decrease in variable costs.

9. Which of these alternatives yields the highest budgeted operating income?

Highland company produces a lightweight backpack that is popular with college students. standard variable costs relating to a single backpack are given below

Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.

Table 1. shows the expected demand for the dvd at different suggested donation levels, and they can act as a single-price monopolist if they choose to. thereceipts will be used to fund gstcg supplies for their data collection and conservation work. at the end of each sea turtle nesting season, any excess funds are donated by the gstcg to a local non-profit sea turtle research and rehabilitation facility. table 1 suggested anticipated total marginal profit donation per number of dvd revenue revenue dvd request requests $19.00 0 $15.00 2 $9.50 4 $7.75 10 $3.00 15 $0.00 20 a. complete table 1 by computing the total revenue, marginal revenue, and profit columns. b. the president wants the gstcg to provide videos to generate the most possible donations (total revenue). what price, if any, is the president of the gstcg favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. c. the education outreach committee wants the gstcg to provide videos to the highest possible number of people. what price, if any, is the educational outreach committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. d. the treasurer of the gstcg wants the dvd program to be as efficient as possible so that the marginal revenue equals marginal cost. what price, if any, is the treasurer favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. e. the fundraising committee wants the dvd program to generate as much profit in donations as possible. what price, if any, is the fundraising committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer.