Given the following data:

	Per Unit			Total
Sales	$	13		$	65,000
Less variable expenses		9			45,000
Contribution margin		4			20,000
Less fixed expenses					12,500
Net income				$	7,500

If sales decrease by 500 units, by what percent would fixed costs have to be reduced to maintain current net income?

Answer rating: 100% (QA)

sale price per unit 13 Total sales 65000 Number of units 5000 Variable cost 9 ... View the full answer