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Wright Corporation's Contribution Format Income Statement for Last Month Appears

question 134

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Wright Corporation's contribution format income statement for last month appears below:
 Sales $45,000 Less: variable expenses 27,000 Contribution margin 18,000 Less: fixed expenses 12,000 Operating income $6,000\begin{array} {| l | r | } \hline \text { Sales } & \$ 45,000 \\\hline \text { Less: variable expenses } & \underline { 27,000 } \\\hline \text { Contribution margin } & 18,000 \\\hline \text { Less: fixed expenses } & \underline { 12,000 } \\\hline \text { Operating income } & \$ 6,000 \\\hline\end{array} There were no beginning or ending inventories. The company produced and sold 3,000 units during the month


-If sales decrease by 500 units in the next month,by how much would fixed expenses have to be reduced to maintain the current operating income?

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Definitions:

Self-Discipline

The ability to control one's feelings, impulses, and actions to achieve long-term goals, often requiring personal sacrifice or delay of gratification.

Higher Achievement

Refers to exceeding standard levels of performance or success in activities, education, or personal goals.

Better Grades

Higher marks or scores awarded in educational assessments, indicating a higher level of understanding or proficiency.

Intrinsic Motivation

The motivation to participate in an action for the inherent satisfaction it provides, rather than for any external incentive or result.

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