Given the Following Data If Sales Decrease by 500 Units, by What Percent Would

Multiple Choice

Given the following data:
$$\begin{array} { l r r r } &{ \text { Per Unit } } & \text { Total } \\\text { Sales } & \$ 15 & \$ 45,000 \\\text { Less variable expenses } & 9 & 27,000 \\\text { Contribution margin } & 6& 18,000 \\\text { Less fixed expenses } & & 12,000 \\\text { Operating profit } & & \$ 6,000\end{array}$$
If sales decrease by 500 units, by what percent would fixed costs have to be reduced by to maintain current operating profit?

A) 50.0%.
B) 33.3%.
C) 25.0%.
D) 16.7%.