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Hang Ten produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $0.85 per package. Each package sells for $1.70.
Hang Ten produces sports socks. The company has fixed expenses of $85,000 and variable expenses of $0.85 per package. Each package sells for $1.70. The number of packages Hang Ten needed to sell to eam a $30,000 operating income was 135,295 packages (rounded). If Hang Ten can decrease its variable costs to $0.65 per package by increasing its fixed costs to $100,000, how many packages will it have to sell to generate $30,000 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 Operating income Fixed expenses Contribution margin per unit (Round your answer up to the nearest whole unit.) Hang Ten will have to sell packages to generate $30,000 of operating income. Sales in units
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