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Three years ago, Helen Martin started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Helen sells
Three years ago, Helen Martin started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Helen sells the baskets for $32 each, and her variable costs are $22 per basket. She incurs $20,000 in fixed costs each year. (a) How many baskets will Helen have to sell this year if she wants to earn $39,000 in operating income? (Round answer to 0 decimal places, e.g. 5,275.) baskets eTextbook and Media Attempts: 0 of 3 used (b) Last year, Helen sold 5,000 baskets, and she believes that demand this year will be stable at 5,000 baskets. The following are the actions Helen could take if she wants to earn $39,000 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 0 decimal places, e.g. 5,275.) 1. Raise selling price per unit to $ 2. Reduce variable costs per unit to $
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