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

question 13

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 unit sales decrease by 10%, how much will fixed costs have to be reduced by to maintain the current operating profit?

• A) $12,000.
• B) $4,500.
• C) $6,000.
• D) $1,800.

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Definitions:

Trespass To Land

A legal concept referring to the unauthorized entry onto someone else's property, which can lead to civil liability.

Unauthorized Entry

Accessing a place or a system without permission or legal right.

Tort Against Property

Legal wrongs committed against someone's property, which can include damage, unauthorized use, or interference.

Trespass

An unauthorized intrusion on a person's property or rights, which can involve entering someone's land without permission or interfering with their possessions.