Given the following data:

	Per Unit			Total
Sales	$	18		$	54,000
Less variable expenses		10			30,000
Contribution margin		8			24,000
Less fixed expenses					16,000
Net income				$	8,000

If sales decrease by 500 units, by what percent would fixed costs have to be reduced to maintain current net income?

50.0%

33.3%

25.0%

16.7%