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You have been provided with the following information: Total Sales $ 90,000 Less Variable expenses 54,000 Contribution margin 36,000 Less fixed expenses 24,000 Operating profit

You have been provided with the following information:

Total
Sales $ 90,000
Less Variable expenses 54,000
Contribution margin 36,000
Less fixed expenses 24,000
Operating profit $ 12,000

If sales decrease by 10%, what level of fixed costs will maintain the current operating profit?

$12,000.

$20,400.

$21,600.

$24,000.

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