If sales decrease by 500 units, by how much would fixed expenses have to be reduced to maintain…

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

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