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:

Two-Dimensional Pictures

Images with only height and width, lacking the depth dimension, used in various visual contexts.

Comparators

Devices or mechanisms used to compare the value of one thing against another in various contexts, such as electronics or psychology.

Inner Ear

The innermost part of the ear, containing the cochlea, vestibule, and semicircular canals, responsible for sound detection and balance.

Auditory Receptors

Sensory cells located in the inner ear that convert sound waves into nerve impulses.