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You have been provided with the following information: Per Unit Total Sales $24 $72,000 Less variable expenses 12 36,000 Contribution margin 12 36,000 Less
You have been provided with the following information: Per Unit Total Sales $24 $72,000 Less variable expenses 12 36,000 Contribution margin 12 36,000 Less fixed expenses 24,000 Operating profit $12,000 If sales decrease by 560 units, how much will fixed costs have to be reduced by to maintain the current operating profit of $12,000? Multiple Choice $13,440. $16,800 $20,160. $6.720
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