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%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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%.
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