You Have Been Provided with the Following Information If Sales Decrease by 500 Units,how Much Will Fixed Costs

question 89

Multiple Choice

You have been provided with the following information:
$$\begin{array} { | l | r | r | } \hline&\text { Per Unit } & \text { Total }\\\hline \text { Sales } & \$ 15 & \$ 45,000 \\\hline \text { Less variable expenses } & \underline{ 9 }& \underline{27,000} \\\hline \text { Contribution margin } &6 & 18,000\\\hline \text { Less fixed expenses } & & \underline{12,000 } \\\hline \text { Operating profit } & &\$6,000\\\hline\end{array}$$
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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