Happy Toes produces sports socks. The company has fixed expenses of $$85,000$ and variable expenses of $$0\mathrm{.}85$ per package. Each package sells for $$1\mathrm{.}70.$

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

The contribution margin per package is

Compute the contribution margin ratio. $($Enter the ratio as a whole percent.$)$

Begin by identifying the formula to compute the contribution margin ratio.

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 $$25,500$ operating income.

The breakeven point in units is

Find the breakeven point in dollars using the contribution margin approach.

Begin by identifying the formula to compute the breakeven point in dollars.

$]+,$ Breakeven sales in dollars

The breakeven point in dollars is

Requirement $3.$ Find the number of packages Happy Toes needs to sell to earn a $$25,500$ operating income.

The number of packages to achieve an operating income of $$25,500$ is