You Have Been Provided with the Following Information If Unit Sales Decrease by 10%, How Much Will Fixed

Multiple Choice

You have been provided with the following information:
$\begin{array}{llr}& \text {Per }\\ & \text { Unit } & \text { Total }\\ \text {Sales } &\$15&\$45,000\\ \text { Less variable expenses } &9&27,000\\ \text { Contribution margin} &6&18,000\\ \text { Less fixed expenses } &&12,000\\ \text {Operating profit } &&\$6,000\\\end{array}$


If unit sales decrease by 10%, how much will fixed costs have to be reduced by to maintain the current operating profit?

A) $12,000.
B) $4,500.
C) $6,000.
D) $1,800.