By what % would fixed expenses have to be reduced


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?

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Accounting Basics: By what % would fixed expenses have to be reduced
Reference No:- TGS065854

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