Given the following data: Per Unit Total Sales $15 $45,000 Less variable expenses 9 27,000 Contribution margin
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Question:
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
Net income $ 6,000
If sales decrease by 500 units, by what % would fixed expenses have to be reduced by to maintain current net income?
Related Book For
OM operations management
ISBN: 978-1285451374
5th edition
Authors: David Alan Collier, James R. Evans
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