Based on the following information, if unit sales decrease by 12%, how much will fixed...
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Accounting
Based on the following information, if unit sales decrease by 12%, how much will fixed costs have to be reduced by to maintain the current operating profit?
Sales $32 per unit, $78k Total
less variable expenses 16 per unit, 34320 total
contribution margin 16 per unit, 34320 total
less fixed expenses 18,000 total
operation profit $18,000 total
a. $2,400
b. $9,360
c. $1,800
d. $3,000
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