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(Click the icon to view the corporate budget data.) Compute the budgeted operating...

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Question

Accounting

(Click the icon to view the corporate budget data.)
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.)
Cases
A 12% increase in contribution margin, holding revenues constant
A 12% decrease in contribution margin, holding revenues constant
A3% increase in fixed costs
A 3% decrease in fixed costs
A 7% increase in units sold
A 7% decrease in units sold
A 12% increase in fixed costs and a 12% increase in units sold
A 3% increase in fixed costs and a 3% decrease in variable costs
Which of these alternatives yields the highest budgeted
operating income? Explain why this is the case.
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