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s. The company has fixed expenses of $100,000 and variable exp rendy Ten needed to sell to earn a $25,000 operating income was ge by increasing its fixed costs to $115,000, how many packages less than before? Why? HILD compute the sales in units at various levels of operating income Operating income Contribution margin pe arest whole unit.) packages to generate $25,000 of operating income.

s. The company has fixed expenses of $100,000 and variable exp rendy Ten needed to sell to earn a $25,000 operating income was ge by increasing its fixed costs to $115,000, how many packages less than before? Why? HILD compute the sales in units at various levels of operating income Operating income Contribution margin pe arest whole unit.) packages to generate $25,000 of operating income.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Trendy Ten produces sports 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 Trendy Ten needed to sell to earn a $25,000 operating income was 125,000 packages. If Trendy Ten 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 $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. 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 sell COLLE Get more help. packages to generate $25,000 of operating income. Clear all Check answer Watchlist Ideas 41 4/3
Transcribed Image Text:Trendy Ten produces sports 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 Trendy Ten needed to sell to earn a $25,000 operating income was 125,000 packages. If Trendy Ten 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 $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. 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 sell COLLE Get more help. packages to generate $25,000 of operating income. Clear all Check answer Watchlist Ideas 41 4/3
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