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Happy Ten 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 Ten 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 Ten needed to sell to earn a $30,000 operating income was 140,000 packages. If Happy Ten can decrease its variable costs to $0.65 per package by increasing its fixed costs to $90,000, how many packages will it have to sell to generate $30,000 of operating income? Is this more or less than before? Why'? Happy Ten will have to sell packages to generate $30,000 of operating income
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