Given the following data:
|
|
Total |
Per Unit |
|
Sales |
$30,000 |
$10 |
|
Less variable expenses |
18,000 |
6 |
|
Contribution margin |
12,000 |
$ 4 |
|
Less fixed expenses |
9,000 |
|
|
Net operating income |
$ 3,000 |
|
If sales decrease by 500 units, by how much would fixed expenses have to be reduced to maintain current net operating income?
A) $5,000
B) $3,000
C) $1,500
D) $2,000