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Three years ago, Linda Williams started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Linda sells
Three years ago, Linda Williams started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Linda sells the baskets for $26 each, and her variable costs are $ 16 per basket. She incurs $ 12,000 in fixed costs each year. (a) How many baskets will Linda have to sell this year if she wants to earn $30,200 in operating income? (Round answer to 0 decimal places, e.g. 5,275.) baskets e Textbook and Media Assistance Used Save for Later Attempts: 0 of 3 used Submit Answer (b) Last year, Linda sold 4,000 baskets, and she believes that demand this year will be stable at 4,000 baskets. The following are the actions Linda could take if she wants to earn $ 30,200 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 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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