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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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