Given the Following Data If Sales Decrease by 500 Units,by What Percent Would Fixed

question 63

Multiple Choice

Given the following data:
$$\begin{array} { | l | r | r | } \hline&\text { Per Unit } & \text { Total }\\\hline \text { Sales } & \$ 15 & \$ 45,000 \\\hline \text { Less variable expenses } & \underline{ 9 }& \underline{27,000} \\\hline \text { Contribution margin } &6 & 18,000\\\hline \text { Less fixed expenses } & & \underline{12,000 } \\\hline \text { Operating profit } & &\$6,000\\\hline\end{array}$$ If sales decrease by 500 units,by what percent would fixed costs have to be reduced by to maintain current net income?

• A) 50.0%.
• B) 33.3%.
• C) 25.0%.
• D) 16.7%.

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