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You Have Been Provided with the Following Information If Unit Sales Decrease by 10%, How Much Will Fixed

question 13

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You have been provided with the following information:
Per  Unit  Total Sales $15$45,000 Less variable expenses 927,000 Contribution margin618,000 Less fixed expenses 12,000Operating profit $6,000\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 unit sales decrease by 10%, how much will fixed costs have to be reduced by to maintain the current operating profit?

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Definitions:

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The set of activities concerned with moving products from the end of production to the end user, including transportation, warehousing, and inventory management.

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A digital device designed for the purpose of reading books in a digital format.

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A research method where a small, diverse group of people whose reactions, perceptions, and opinions are studied regarding a particular topic or concept.

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