Question: 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


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? 40.0% 21.6% 17.5% 18.4%
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