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Trendy Ten produces sports socks. The company has fixed expenses of $95,000 and variable expenses of $0.95 per package. Each package sells for $1.90. The

image text in transcribedimage text in transcribed Trendy Ten produces sports 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 eam a $25,000 operating come was 126,316 packages (munded) Trendy Ten can decrease its variable costs to $0.75 per package by increasing its fixed costs to $110,000, how many packages will it have to sell to generate $25,000 of operating income? is this more or less than before? Why? Begin by denying the formula to compute the sales in units at various levers of operating income using the contribution margin approach Operating income Contribution margin perunt (Round your answer up to the nearest whole unt.) Trendy Ten will have to sel packages to generate $25,000 of operating income. Is this more or less than before? Why? Trendy Ten would have to sell The increase in fixed co packages of socks to eam $25.000 of operating income completely offset by the in varate costs at the pr target profit volume of sales. Therefore, Trendy Ten will need to s target profe Sales in uns Trendy Ten produces sports socks. The company hes fixed expenses of $95,000 and vasable expenses of 50 95 per package. Each package selle for $1.90. The number of packages Trendy Tan needed to sell to earn a $25,000 operating income was 126.316 packages (rounded) Il Trendy Ten can decrease is variable costs to $0.75 per package by increasing its fixed costs to $110.000, how many packages wil it have to set to generate $25,000 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 Operating come Contibution margin perunt Sales in units (Round your answer up to the nearest whole unit) packages to generate $25,000 of operating income Trendy Ten will have to is this more or less than before? Why? Trendy Ten would have to sell The ne packages of socks to $25,000 of operating income arget proft volume of saws Therds Trendy Tan will reed to eat larget put level

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