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Problem 5-6 point Problem Three years ago, Marissa Moore started a business that creates and delivers holiday and birthday gift baskets to students at
Problem 5-6 point Problem Three years ago, Marissa Moore started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Marissa sells the baskets for $50 each, and her variable costs are $30 per basket. She incurs $24,000 in fixed costs each year. Required- 1. How many units must she sell to generate an Operating Income of $60,000? 2. Last year, Marissa sold 4,000 baskets, and she believes that demand this year will be stable at 4,000 baskets. What actions could Marissa take if she wants to earn $30,000 in operating income by selling only 4,000 baskets this year? Calculate what the Fixed Expenses would need to be and also calculate the Variable Cost Per Unit. 60,000
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