Rainbow Toys has a target net income of $25,000 and fixed costs of $7,550. If...

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Accounting

Rainbow Toys has a target net income of $25,000 and fixed costs of $7,550. If they regularly sell 12,000 units and each unit has a contribution margin of $2.50, how much do they need to decrease their fixed costs by to meet their target net income?
$5,100
$5,000
$2,550
$10,000
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