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Current Attempt in Progress Three years ago, Barbara Jones started a business that creates and delivers holidday and birthday gift baskets to students at the
Current Attempt in Progress
Three years ago, Barbara Jones started a business that creates and delivers holidday and birthday gift baskets to students at the local university. Barbara sells the baskets for $ each, and her variable costs are $ per basket. She incurs $ in fixed costs each year
Last year, Barbara sold baskets, and she believes that demand this year will be stable at baskets. The following are the actions Barbara could take if she wants to earn $ in operating income by selling only baskets. Consider each action independently. Round per unit answers to decimal places, eg and fixed cost to decimal places, eg
Raise selling price per unit to
$
Reduce variable costs per unit to
$
Reduce fixed costs to
$
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