You have been provided with the following information: Total Sales $ 90,000 Less Variable expenses 54,000 Contribution
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Question:
Total | ||
Sales | $ | 90,000 |
Less Variable expenses | 54,000 | |
Contribution margin | 36,000 | |
Less fixed expenses | 24,000 | |
Operating profit | $ | 12,000 |
If sales decrease by 10%, what level of fixed costs will maintain the current operating profit?
$12,000.
$20,400.
$21,600.
$24,000.
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
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