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Happy Feet produces sport socks. The company has fixed expenses of $100,000 and variable expenses of $1.00 per package. Each package sells for $2.00. The
Happy Feet produces sport socks. The company has fixed expenses of $100,000 and variable expenses of $1.00 per package. Each package sells for $2.00. The number of packages Happy Feet needed to sell to eam a $22,000 operating income was 122,000 packages. If Happy Feet can decrease its variable costs to S0.80 per package by increasing its fixed costs to 115,000, how many packages will it have to sell to generate $22,000 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 Fixed expenses Operating income Contribution margin per unitSales in units Round your answer up to the nearest whole unit.) Happy Feet will have to sell packages to generate $22,000 of operating income
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