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xE7-22A (similar to) Question Help Ten Toes produces sport socks. The company has fixed expenses of $100,000 and variable expenses of $1.00 per package. Each
xE7-22A (similar to) Question Help Ten Toes produces sport socks. The company has fixed expenses of $100,000 and variable expenses of $1.00 per package. Each package sells for $2.00. The number of packages Ten Toes needed to sell to earn a $22,000 operating income was 122,000 packages. If Ten Toes can decrease its variable costs to $0.90 per package by increasing its fixed costs to $115,000, how many packages will it have to sell to generate $22,000 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) Ten Toes will have to sell 124,546 packages to generate $22,000 of operating income. Is this more or less than before? Why? Ten Toes would have to sell 12454 more packages of socks to earn $22,000 of operating income. The increase in fixed costs was not completely offset by the decrease in variable costs at the prior target profit volume of sales. Therefore, Ten Toes will need to sell more units in order to achieve its target profit level. Choose from any list or enter any number in the input fields and then click Check Answer. All parts showing Clear All Final Check
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