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Hang Ten produces sportsocks. The company has forced expenses of 505,000 and variable expenses of 120 per package. Each package sells for $2.00. The number

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Hang Ten produces sportsocks. The company has forced expenses of 505,000 and variable expenses of 120 per package. Each package sells for $2.00. The number of packages Hang Ton needed to sell to cama $26.000 operating income was 138,750 packages. If Hang Ton can decreases variable costs to $1.10 per package by increasing its fed costs to $100,000, how many packages will have to sello generale $26,000 of operating income? Is this more or less than before? Why? Begin by identifying the formula to compute the sales in uns at various levels of operating income using the contribution marginapproach Fand expenses - Operating income Contribution margin per unit Sales in its (Round your answer up to the nearest whole unit.) Hang Ton will have to 100000 packages to generale $26,000 of operating income Is this more or less than before? Why? Hang Ton would have to packages of socks to earn $20,000 of operating income The increase in foed costs completely offset by the in variable costs at the prior target profit volume of sales. Therefore, Hang Ton will need to sell units in order to achieve its target profit level

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