Given the following data: Sales Less variable expenses Contribution margin Less fixed expenses Operating profit Per Unit $25 18 7 Total $70,000 50,400 19,600 14,000 $ 5,600 If sales decrease by 350 units, by what percent would fixed costs have to be reduced in order to maintain current operating profit?
Given the following data: Sales Less variable expenses Contribution margin Less fixed expenses Operating profit Per Unit $25 18 7 Total $70,000 50,400 19,600 14,000 $ 5,600 If sales decrease by 350 units, by what percent would fixed costs have to be reduced in order to maintain current operating profit?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Given the following data:
Sales
Less variable expenses
Contribution margin
Less fixed expenses
Operating profit
Per
Unit
$25
18
7
Total
$70,000
50,400
19,600
14,000
$ 5,600
If sales decrease by 350 units, by what percent would fixed costs have to be reduced in order to maintain current operating
profit?
Transcribed Image Text:O
O
O
40.0%
21.6%
17.5%
18.4%
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