Question

Refer to Sport Ready in E7- 19A. If the company can decrease its variable costs to $ 0.80 per package by increasing its fixed costs to $ 105,000, how many packages will it have to sell to generate $ 18,000 of operating income? Is this more or less than before? Why?

Sport Ready in E7
Sport Ready produces sports socks. The company has fixed expenses of $ 90,000 and ­variable expenses of $ 0.90 per package. Each package sells for $ 1.80.



$1.99
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  • CreatedAugust 27, 2014
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