You Have Been Provided with the Following Information If Sales Decrease by 500 Units, How Much Will Fixed

question 57

Multiple Choice

You have been provided with the following information:
$\begin{array}{llr}& \text {Per }\\ & \text { Unit } & \text { Total }\\ \text {Sales } &\$15&\$45,000\\ \text { Less variable expenses } &9&27,000\\ \text { Contribution margin} &6&18,000\\ \text { Less fixed expenses } &&12,000\\ \text {Operating profit } &&\$6,000\\\end{array}$

If sales decrease by 500 units, how much will fixed costs have to be reduced by to maintain the current operating profit of $6,000?

• A) $9,000.
• B) $7,500.
• C) $6,000.
• D) $3,000.

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Definitions:

Compound-complex Sentence

A sentence that contains at least two independent clauses and one or more dependent clauses, offering nuanced information or perspective.

Sentence Pattern

The structure and format in which words are arranged to create sentences, involving the order of subjects, verbs, and objects.

Indirect Strategy

A communication method where background information and supporting details are presented before the main idea or purpose.

Run-on Sentence

A grammatically faulty sentence in which two or more main clauses are joined without a conjunction or proper punctuation.