Save Homework: HW #5 - Chapter 7 Score: 0.33 of 1 pt 4 of 10 (10 complete) w Score: 80.1%, 8.01 of 10.. E7-22A (similar to) Question Help Big Foot produces sport socks. The company has fixed expenses of $85,000 and variable expenses of $0.85 per package. Each package sells for $1.70. The number of packages Big Foot needed to sell to earn a $22,000 operating income was 125,883 packages (rounded). If Big Foot can decrease its variable costs to $0.65 per package by increasing its fixed costs to $100,000, how many packages will it have to sell to generate $22,000 of operating income? Is this more or less than before? 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 whole unit.) Big Foot will have to sell 116,191 packages to generate $22,000 of operating income Is this more or less than before? Why? Big Foot would have to sell packages of socks to eam $22,000 of operating income The increase in fixed costs completely offset by the in variable costs at the prior target profit volume of sales. Therefore, Big Foot will need to sell units in order to achieve its target profit level Choose from any ist or enter any number in the input fields and then click Check Answer All parts showing Clear All Check Answer MacBook esc 80 13 I # $ % 2 3 3