You have been provided with the following information

sales $90,000
less variable exp (54,000)
contribution margin 36,000
less fixed exp (24,000)
operating profit $12,000 if sales decrease by 10%, what level of fixed expenses will maintain the current operating profit?

$15000.

Explanation:

Given: Sales $90,000

Less Variable Exp (54,000)

Contribution margin 36,000

Less Fixed Exp (24,000)

Operating Profit $12,000

As sales decreases by 10%.

∴ Sales=

Sales=

Solving and opening the parenthesis.

Sales=

Sales= $81000.

Now, computing to get fixed expense at which operating profit will remain same.

Contribution margin= sales- variable expense

⇒ Contribution margin=

Fixed expense= Contribution margin - operating profit

∴ Fixed expense will $ 15000 at which operating profit will remain same.

d) social security number

let me know if i am correct or not, so i can edit the answer.