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Ten Toes produces sport socks. The company has fixed expenses of S75,000 and variable expenses of $0.75 per package. Each package sells for $1.50. The
Ten Toes produces sport socks. The company has fixed expenses of S75,000 and variable expenses of $0.75 per package. Each package sells for $1.50. The number of packages Ten Toes needed to sell to eam a $28,000 oparating income was 137, 34 packages r unded ir Ten Toes can decrease its variable costs to0.65 per package by increasing ts fixed costs to S90 000 many packages will it have to sell to generate $28 000 t 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. d expensesOperating income Contribution margin per unit Sales in units Round your answer up to the nearest whole unit.) Ten Toes will have to sell packages to generate $28,000 of operating income
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