Exam P1 Topic 6 Question 115 Discussion

A company's initial budget for month 3 includes sales of $100,000, a contribution to sales (C/S) ratio of
40% and fixed costs of $20,000.
If the budgeted sales volume in month 3 is reduced by 5% but contribution per unit, total fixed costs and sales mix are unchanged, which of the following statements, about the change to the budgeted profit or contribution in month 3 is true?