Happy Toes produces sports socks. The company has fixed expenses of $90000 and variable expenses of $0.90 per package. Each package sells for $1.80. The number of packages needed to sell to earn $30,000 operating income was 133334 packages (rounded) If can decrease its variable costs to $0.70 per package by increasing its fixed costs to $105,000, how many packages will it have to sell to generate of operating income? Is this more or less than before? Why?

Happy Toes will have to sell

packages to generate $30,000 of operating income.