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Ten Toes 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
Ten Toes 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 Ten Toes needed to sell to earn a $22,000 operating income was 125,883 packages (rounded). If Ten Toes 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? (Round your answer up to the nearest whole unit.) Ten Toes will have to sell 116,191 packages to generate $22,000 of operating income. Is this more or less than before Ten Toes would have to packages of socks to earn $22,000 of operating sell 9692|fewer income. The increase in fixed completely offset by in variable costs at the costs was not the decrease prior target profit volume of sales. Therefore, Ten Toes will need units in order to achieve to sell more its target profit level
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