Question: Refer to Hang Ten in E7- 40B. If Hang Ten can decrease its variable costs to $ 0.60 per package by increasing its fixed costs

Refer to Hang Ten in E7- 40B. If Hang Ten can decrease its variable costs to $ 0.60 per package by increasing its fixed costs to $ 95,000, how many packages will it have to sell to generate $ 25,000 of operating income? Is this more or less than before? Why?

In E7- 40B.
Hang Ten produces sports socks. The company has fixed expenses of $ 80,000 and variable expenses of $ 0.80 per package. Each package sells for $ 1.60.

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