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Trendy Ten produces sport socks. The company has fixed expenses of $95,000 and variable expenses of $0.95 per package. Each package sells for $1.90. The
Trendy Ten produces sport socks. The company has fixed expenses of $95,000 and variable expenses of $0.95 per package. Each package sells for $1.90. The number of packages Trendy Ten needed to sell to earn a $27,000 operating income was 128,422 packages (rounded). If Trendy Ten can decrease its variable costs to S0.75 per package by increasing its fixed costs to $110,000, how many packages will it have to sell to generate $27,000 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.) Trendy Ten will have to sellpackages to generate $27,000 of operating income
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