You Have Been Provided with the Following Information -
If Sales Decrease by 10%, What Level of Fixed

question 139

Multiple Choice

You have been provided with the following information:
$$\begin{array} { l r } & { \text { Total } }\\\text { Sales } & \$ 90,000 \\\text { Less Variable expenses } & 54,000 \\\text { Contribution margin } & 36,000 \\\text { Less fixed expenses } & 24,000 \\\text { Operating profit } & \$ 12,000 \\\end{array}$$
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If sales decrease by 10%, what level of fixed costs will maintain the current operating profit?

• A) $12,000.
• B) $20,400.
• C) $21,600.
• D) $24,000.

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Definitions:

Judged Less Positively

Refers to being evaluated or perceived by others in a more negative or less favorable manner.

Two-Person Career

A partnership where one spouse's career is prominently supported by the other's contributions at home or in social settings.

Costs and Benefits

The analysis or consideration of the negative and positive impacts of a decision or action.

High-Achieving

Pertaining to individuals or entities that significantly exceed the standard performance expectations in their activities or tasks.