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