le costs change based on the number of subs sold.         Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently.) Alternatives: 1. Determine the budgeted operating income based on the original budget data. 2. A 10% increase in contribution margin, holding revenues constant. 3. A 10% decrease in contribution margin, holding revenues constant.

The Deli-Sub Shop owns and operates six stores in and around Minneapolis. You are given the following corporate budget data for next year:
                     
    Revenues $11,000,000            
    Fixed costs $3,000,000            
    Variable costs $7,500,000            
                     
Variable costs change based on the number of subs sold.        

Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently.)

Alternatives:
1. Determine the budgeted operating income based on the original budget data.
2. A 10% increase in contribution margin, holding revenues constant.
3. A 10% decrease in contribution margin, holding revenues constant.
4. A 5% increase in fixed costs.
5. A 5% decrease in fixed costs.
6. A 5% increase in units sold.
7. A 5% decrease in units sold.
8. A 10% increase in fixed costs and a 10% increase in units sold.
9. A 5% increase in fixed costs and a 5% decrease in variable costs.
10. Which of these alternatives yields the highest budgeted operating income?

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