Happy Feet produces socks. The company has fixed expenses of $80,000 and variable expenses of $0.80 per package. Each package sells for $1.60. The number of packages Happy Feet needed to sell to earn a $29,000 operating income was 136,250 packages. If Happy Feet decreases its variable costs to $0.70 per package by increasing its fixed costs to $95,000, how many packages will it have to sell to generate $29,000 of operating income? Is this more or less than before? Why?

Part 1: Part 1 Word Blank Options for the Formula: Part 2: Part 2 Word Options: have to sell (fewer, more) the increase in fixed costs (was, was not) completely offset by the (increase, decrease) will need to sell (fewer, more) Please label which part of the question you are answering so that I may follow along, and please refrain from partially completing the question. Thank you!

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.) Happy Feet will have to sellpackages to generate $29,000 of operating income