Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hang Ten will have to sell packages to generate $30,000 of operating income. Hang Ten H a n g T e n produces sport socks.

Hang Ten will have to sell

packages to generate $30,000 of operating income.

Hang TenHangTen produces sport socks. The company has fixed expenses of $ 90 comma 000$90,000 and variable expenses of $ 0.90$0.90 per package. Each package sells for $ 1.80$1.80. The number of packages Hang TenHangTen needed to sell to earn aa $ 30 comma 000$30,000 operating income was 133 comma 334133,334 packages left parenthesis rounded right parenthesis .packages(rounded). If Hang TenHangTen can decrease its variable costs to $ 0.70$0.70 per package by increasing its fixed costs to $ 105 comma 000$105,000, how many packages will it have to sell to generate $ 30 comma 000$30,000 of operatingincome? Is this more or less thanbefore? Why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Daniel G Short, George Kanaan, Maureen Sterling

6th Canadian edition

73208140, 1259105695, 978-1259105692

More Books

Students also viewed these Accounting questions

Question

Given that f(x) = x 3 7x 2 + 2x + 1, find a. f(1) b. f(1) c. f(1).

Answered: 1 week ago

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago