Three years ago, Donna Clark started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Donna sells the baskets for $34 each, and her variable costs are $24 per basket. She incurs $16,000 in fixed costs each year.

Last year, Donna sold 5,000 baskets, and she believes that demand this year will be stable at 5,000 baskets. The following are the actions Donna could take if she wants to earn $43,000 in operating income by selling only 5,000 baskets. Consider each action independently. (Round per unit answers to 2 decimal places, e.g. 52.75 and fixed cost to decimal places, e.g. 5,275.) $ 1. Raise selling price per unit to $ 2. Reduce variable costs per unit to $ 3. Reduce fixed costs to