SportReady produces sports socks. The company has fixed expenses of$76,000 and variable expenses of$1.15 per package. Each package sells for$2.75. The number of packagesSportReadyneeds to sell to earn a$31,000 operating income is66,875 packages. IfSportReady can decrease its variable costs to

$0.95 per package by increasing its fixed costs to$98,000, how many packages will it have to sell to generate$31,000 of operatingincome? Is this more or less thanbefore? Why?

Begin by identifying the formula that finds the sales in units at the target operating income using the contribution margin approach. Then calculate the target sales in units. (Round your answer up to the nearest whole unit.) = Target sales in units Is the number of packages more or less than before? Why? Sport Ready will need to sell packages in order to earn $31,000 of operating income. The increase in fixed costs completely offset by the in variable costs at the prior target profit volume of sales