Three years ago,NancyJacksonstarted a business that creates and delivers holiday and birthday gift baskets to students at the local university.Nancysells the baskets for $31each, and her variable costs are $21per basket. She incurs $13,200in fixed costs each year.

(a)

How many baskets willNancyhave to sell this year if she wants to earn $33,000in operating income?(Round answer to 0 decimal places, e.g. 5,275.)

enter a number of basketsrounded to 0 decimal places

baskets

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(b)

Last year,Nancysold4,400baskets, and she believes that demand this year will be stable at4,400baskets. The following are the actionsNancycould take if she wants to earn $33,000in operating income by selling only4,400baskets.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