Question
Given the following data: Per Unit Total Sales $15 $45,000 Less variable expenses 9 27,000 Contribution margin 6 18,000 Less fixed expenses 12,000 Net income
Given the following data:
Per Unit Total
Sales $15 $45,000
Less variable expenses 9 27,000
Contribution margin 6 18,000
Less fixed expenses 12,000
Net income $ 6,000
If sales decrease by 500 units, by what % would fixed expenses have to be reduced by to maintain current net income?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
Calculate following Present Proposed Sales 45...
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OM operations management
Authors: David Alan Collier, James R. Evans
5th edition
1285451376, 978-1285451374
