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Big Foot produces sport socks. The company has fixed expenses of $90,000 and variable expenses of $0.90 per package. Each package sells for S1.80. The

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Big Foot produces sport socks. The company has fixed expenses of $90,000 and variable expenses of $0.90 per package. Each package sells for S1.80. The number of packages Big Foot needed to sell to eam a $23,000 operating income was 125,556 packages (rounded). If Big Foot can decrease its variable costs to $0.70 per package by increasing its fixed costs to $105,000, how many packages will it have to sell to generate $23,000 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 - Sales in units Round your answer up to the nearest whole unit.) Big Foot will have to sell Is this mcre or less than before? Why? Big Foot would have to sell The increase in fixed costs target profit volume of sales. Therefore, Big Foot will need to sell target profit level. packages to generate $23,000 of operating income. packages of socks to eam $23,000 of operating income. completely offset by the in variable costs at the prior units in order to achieve its

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