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?

Astock is selling today for $50 per share. at the end of the year, it pays a dividend of $3 per share and sells for $58. a. what is the total rate of return on the stock? (enter your answer as a whole percent.) b. what are the dividend yield and percentage capital gain? (enter your answers as a whole percent.) c. now suppose the year-end stock price after the dividend is paid is $42. what are the dividend yield and percentage capital gain in this case? (negative amounts should be indicated by a minus sign. enter your answers as a whole percent.)

9. tax types: taxes are classified based on whether they are applied directly to income, called direct taxes, or to some other measurable performance characteristic of the firm, called indirect taxes. identify each of the following as a “direct tax,” an “indirect tax,” or something else: a. corporate income tax paid by a japanese subsidiary on its operating income b. royalties paid to saudi arabia for oil extracted and shipped to world markets c. interest received by a u.s. parent on bank deposits held in london d. interest received by a u.s. parent on a loan to a subsidiary in mexico e. principal repayment received by u.s. parent from belgium on a loan to a wholly owned subsidiary in belgium f. excise tax paid on cigarettes manufactured and sold within the united states g. property taxes paid on the corporate headquarters building in seattle h. a direct contribution to the international committee of the red cross for refugee relief i. deferred income tax, shown as a deduction on the u.s. parent’s consolidated income tax j. withholding taxes withheld by germany on dividends paid to a united kingdom parent corporation

Marketing1. suppose the average price for a new disposable cell phone is $20, and the total market potential for that product is $4 million. topco, inc. has a planned market share of 10 percent. how many phones does topco have the potential to sell in this market? 20,0002. use the data from question 3 to calculate topco, inc.'s planned market share in dollars. $400,0003. atlantic car rental charges $29.95 per day to rent a mid-size automobile. pacific car rental, atlantic's main competitor, just reduced prices on all its car rentals. in response, atlantic reduced its prices by 5 percent. now how much does it cost to rent a mid-size automobile from atlantic? $28.45