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Happy Feet produces sport socks. The company has fixed expenses of $75,000 and variable expenses of $0.75 per package. Each package sells for $1.50. The
Happy Feet produces sport socks. The company has fixed expenses of $75,000 and variable expenses of $0.75 per package. Each package sells for $1.50. The number of packages Happy Feet needed to sell to earr a $30,000 operating income was 140,000 packages. If Happy Feet can decrease its variable costs to S0.65 per package by increasing its fixed costs to $90,000, how many packages will it have to sell to gensrate $30,000 of operating income? ls this more or less than before? Why? Begin by identifying the forrula to corripute the sales in units at varicuslevls of operating incorie using the contribution margin appoch Fixed expenses Operating incomeContribution margin per unitSales in units Round your answer up to the nearest whale unit) Happy Feet will have to sell packages to generate 30,000 of operating incorne
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