Three years ago,MarySmithstarted a business that creates and delivers holiday and birthday gift baskets to students at the local university.Marysells the baskets for $25each, and her variable costs are $15per basket. She incurs $10,500in fixed costs each year.

A. How many baskets willMaryhave to sell this year if she wants to earn $28,000in operating income?(Round answer to 0 decimal places, e.g. 5,275.)

B. Last year,Marysold3,500baskets, and she believes that demand this year will be stable at3,500baskets. The following are the actionsMarycould take if she wants to earn $28,000in operating income by selling only3,500baskets.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 dollar =
2. Reduce variable costs per unit to dollar =
3. Reduce fixed costs to dollar=