Happy Toes produces sports socks. The company has fixed expenses of $$85,000$ ?and variable expenses of $$1\mathrm{.}20$ ?per package. Each package sells for $$2\mathrm{.}00.$ ?Read the requirements.

Requirement $1.$ ?Compute the contribution margin per package and the contribution margin ratio.

Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. $($Enter the amount to the nearest cent.$)$

$?$

$?=$ ?Contribution margin per unit $?$

Contribution margin per unit

Fixed costs

Operating income

Sales price per unit

Total variable cost

Variable cost per unit

Requirements

Compute the contribution margin per package and the contribution margin ratio.

Find the breakeven point in units and in dollars.

Find the number of packages Happy Toes needs to sell to earn a $$22,000$ ?operating income.