Answer the following questions in the surrounding highlighted yellow box

Happy Feet produces sport socks. The company has fixed expenses of $100,000 and variable expenses of $1.00 per package. Each package sells for $2.00. The number of packages Happy Feet needed to sell to eam a $22,000 operating income was 122,000 packages. If Happy Feet can decrease its variable costs to $0.80 per package by increasing its fixed costs to $115,000, how many packages will it have to sell to generate $22,000 of operating income? Is this more or less than before? Why? Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach. Fixed expenses Operating income Contribution margin per unitSales in units Round your answer up to the nearest whole unit.) Happy Feet will have to sell 114,167 packages to generate $22,000 of operating income. is this more or less than before? Why? Happy Feet would have to sell The increase in fixed costs target profit volume of sales. Therefore, Happy Feet will need to sell target profit level. packages of socks to earn $22,000 of operating income. in variable costs at the prior units in order to achieve its completely offset by the