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Three years ago, Jennifer Davis started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Jennifer sells

Three years ago, Jennifer Davis started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Jennifer sells the baskets for $ 25each, and her variable costs are $ 15per basket. She incurs $ 12,000in fixed costs each year.

Last year, Jennifer sold 3,200baskets, and she believes that demand this year will be stable at 3,200baskets. The following are the actions Jennifer could take if she wants to earn $ 24,000in operating income by selling only 3,200baskets. 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 $
3. Reduce fixed costs to $

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