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 $ 12,000If sales decrease by 10%, what level of fixed costs will maintain the current operating profit? $20,400. $12,000. $24,000. $21,600.

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 $ 12,000If sales decrease by 10%, what level of fixed costs will maintain the current operating profit? $20,400. $12,000. $24,000. $21,600.

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 4BE

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