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Happy Toes produces sports socks. The company has fixed expenses of $110,000 and variable expenses of $1.10 per package. Each package sells for $2.20. The
Happy Toes produces sports socks. The company has fixed expenses of $110,000 and variable expenses of $1.10 per package. Each package sells for $2.20. The number of packages Happy Toes needed to sell to earn a $26,000 operating income was 123,637 packages (rounded). If Happy Toes can decrease its variable costs to $0.90 per package by increasing its fixed costs to $125,000, how many packages will it have to sell to generate $26,000 of operating income? Is this more or less than before? Why
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