produces sport socks. The company has fixed expenses of $ 85 comma 000

$85,000 and variable expenses of $ 0.85

$0.85 per package. Each package sells for $ 1.70

$1.70. The number of packages Happy Feet

HappyFeet needed to sell to earn a

a $ 28 comma 000

$28,000 operating income was 132 comma 942

132,942 packages left parenthesis rounded right parenthesis .

packages(rounded). If Happy Feet

HappyFeet can decrease its variable costs to $ 0.65

$0.65 per package by increasing its fixed costs to $ 100 comma 000

$100,000, how many packages will it have to sell to generate $ 28 comma 000

$28,000 of operatingincome? Is this more or less thanbefore? Why?

Begin by identifying the formula to compute the sales in units at various levels of operating income using the contribution margin approach.

(

Fixed expenses

+

Operating income

) /

Contribution margin per unit

=

Sales in units

(Round your answer up to the nearest wholeunit.)

Happy Feet will have to sell

packages to generate $28,000 of operating income