Three years ago, Patricia Johnson started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Patricia sells the baskets for $26 each, and her variable costs are $16 per basket. She incurs $11,500 in fixed costs each year.

(a) How many baskets will Patricia have to sell this year if she wants to earn $28,100 in operating income? (Round answer to 0 decimal places, e.g. 5,275.) enter a number of baskets rounded to 0 decimal places baskets

(b) Last year, Patricia sold 3,600 baskets, and she believes that demand this year will be stable at 3,600 baskets. The following are the actions Patricia could take if she wants to earn $28,100 in operating income by selling only 3,600 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 $enter raise in selling price per unit amount in dollar rounded to 2 decimal places

2. Reduce variable costs per unit to $enter reduce variable costs per unit amount in dollar rounded to 2 decimal places

3. Reduce fixed costs to $enter reduce fixed costs per unit amount in dollar rounded to 2 decimal places

change data is given already see above