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1. Wright Corporation's contribution format income statement for last month appears below: Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income $45,000 27,000

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1. Wright Corporation's contribution format income statement for last month appears below: Sales Less: variable expenses Contribution margin Less: fixed expenses Operating income $45,000 27,000 18,000 12,000 $6,000 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? a) $7,500. b) $6,000. c) $2,000. d) $3,000

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