Three years ago, Marissa Moore started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Marissa sells the baskets for $33 each, and her variable costs are $23 per basket. She incurs $13,100 in fixed costs each year.

How many baskets will Marissa have to sell this year if she wants to earn $28,700 in operating income? (Round answer to 0 decimal places, e.g. 5,275.)

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baskets

Last year, Marissa sold 3,980 baskets, and she believes that demand this year will be stable at 3,980 baskets. The following are the actions Marissa could take if she wants to earn $28,700 in operating income by selling only 3,980 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		$ ....................
3.		Reduce fixed costs to		$ ......................