Business, 03.04.2020 00:02, justachelseafan
Nicole Walker owns a small bakery in Georgia. A friend has asked to partner with her in the business. In order to know if she wants to expand the business, Nicole wants to "run" some computations to better understand the existing business. Budgeted data for the next 12 months includes:
Revenues $600,000
Fixed costs $150,000
Variable costs $425,000
Variable costs will change based on the number of products sold. Use an Excel spreadsheet to compute expected operating income for each of the following scenarios. Please refer to CSU-Global Library (Links to an external site.) for Lynda tutorials on using Microsoft Excel or use the Excel Tutorials link found in the classroom if you need assistance.
A. A 5% increase in contribution margin, but keeping revenues steady,
B. A 5% decrease in fixed costs,
C. A 10% increase in units sold,
D. A 15% increase in units sold and a 5% increase in fixed cost,
E. A 5% decrease in variable costs and a 5% decrease in fixed cost
Answers: 1
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Nicole Walker owns a small bakery in Georgia. A friend has asked to partner with her in the business...
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