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$1$ Compute the budgeted operating income for each of the following deviations from the original budget data. $($Consider each case independently.$)$

a$.$ Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.

b$.$ Refer to the budgeted operating income based on the original budget data in all calculations.

$($Always use cell references and formulas where appropriate to receive full credit. Cell references and formulas should be based on the original data. If you copy$/$paste from the Instructions tab or if you type the numbers in$,$ you will be marked wrong.$)$

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?

Direct Materials F$/$U Direct Manufacturing Labor F$/$U

$(1)$ Price variance

$(2)$ Efficiency variance

$(3)$ Flexible$-$budget variance

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