Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hang ten produces sport socks. the company has fix

Hang Ten produces sport socks. The company has fixed expenses of $95,000 and variable expenses...

60.1K

Verified Solution

Question

Accounting

image

Hang 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 Hang Ten needed to sell to earn a $26,000 operating income was 127,369 packages (rounded). If Hang 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 $26,000 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.) Hang Ten will have to sell packages to generate $26,000 of operating income

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Using the information with the slides complete the data table below Type of Water Saltwa...

Biology
Q

for each of the following pair of endocrine disorders, list the gland(s) and hormone(s) involved and...

Medical Sciences
Q

For each transaction below, write the net effect on Current Assets (CA), Current Liabilities (CL), Gross...

Accounting
Q

Choose the correct answer The limit on Congressional pay is O voter backlash O Constitutionally...

Biology
Q

A square loop of edge 20 cm and resistance of 212 is placed vertically in...

Physics
Q

What interest will be earned if $7000 is invested for 4 years at 11% compounded...

Basic Math
Q

Determine the slope m and y intercept if possible of the linear equation If the...

Calculus
Q

e table shows the number of boys and girls that have black blonde brown or...

Algebra
Q

Classic Pen Co.: Developing an ABC Model Harvard Business...

Accounting
Q

Following is the information concerning operating activity for Annette County. For the year ended June...

Accounting
Q

During Year 2, Rooney Manufacturing Company incurred $120,400,000 of research and development (R\&D) costs to...

Accounting
Q

How much will you have in a savings account in ten years, if you deposit...

Accounting