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: 5. A 5% Decrease In Fixed Costs. 6. A 5% Increase In Units Sold. 10. Which Of These Alternatives Yields The Highest Budgeted Operating Income?

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: 5. A 5% decrease in fixed costs. 6. A 5% increase in units sold. 10. Which of these alternatives yields the highest budgeted operating income?

- November 14, 2022 - Edwin Tunner

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:

5. A 5% decrease in fixed costs.
6. A 5% increase in units sold.

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

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