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You have been provided with the following information: Per Unit Total Sales $ 15 $ 45,000 Less variable expenses 9 27,000 Contribution margin $ 6
You have been provided with the following information:
Per Unit | Total | ||||
Sales | $ | 15 | $ | 45,000 | |
Less variable expenses | 9 | 27,000 | |||
Contribution margin | $ | 6 | 18,000 | ||
Less fixed expenses | 12,000 | ||||
Operating profit | $ | 6,000 | |||
If unit sales decrease by 10%, how much will fixed costs have to be reduced by to maintain the current operating profit?
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