You have been provided with the following information: Per...
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Accounting
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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