Given the following data: 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 $ 6,000If sales decrease by 500 units, by what percent would fixed costs have to be reduced by to maintain current operating profit? 25.0%. 16.7%. 50.0%. 33.3%.

Given the following data: 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 $ 6,000If sales decrease by 500 units, by what percent would fixed costs have to be reduced by to maintain current operating profit? 25.0%. 16.7%. 50.0%. 33.3%.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23E

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