Three years ago, Barbara Jones started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Barbara sells the baskets for $29 each, and her variable costs are $19 per basket. She incurs $12,500 in fixed costs each year.

How many baskets will Barbara have to sell this year if she wants to earn $30,900 in operating income? (Round answer to 0 decimal places, e.g. 5,275.)

baskets

Last year, Barbara sold 4,000 baskets, and she believes that demand this year will be stable at 4,000 baskets. The following are the actions Barbara could take if she wants to earn $30,900 in operating income by selling only 4,000 baskets. Consider each action independently. (Round per unit answers to 2 decimal places, e.g. 52.75 and fixed cost to 0 decimal places, e.g. 5,275.)

1.		Raise selling price per unit to		$enter raise in selling price per unit amount in dollar rounded to 2 decimal places
2.		Reduce variable costs per unit to		$enter reduce variable costs per unit amount in dollar rounded to 2 decimal places
3.		Reduce fixed costs to		$enter reduce fixed costs per unit amount in dollar rounded to 2 decimal places