Current Attempt in Progress

Three years ago, Maria Miller started a business that creates and delivers holiday and birthday gift baskets to students at the local university. Maria sells the baskets for $$34$ each, and her variable

costs are $$24$ per basket. She incurs $$12,100$ in fixed costs each year.

$($a$)$

How many baskets will Maria have to sell this year if she wants to earn $$25,000$ in operating income? $($Round answer to $0$ decimal places, e$.$g$.5,275.)$

baskets

$($b$)$

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Last year, Maria sold $3,500$ baskets, and she believes that demand this year will be stable at $3,500$ baskets. The following are the actions Maria could take if she wants to earn $$25,000$ in

operating income by selling only $3,500$ baskets. Consider each action independently. $($Round per unit answers to $2$ decimal places, e$.$g$.52\mathrm{.}75$ and fixed cost to $0$ decimal

places, e$.$g$.5,275.)$

Raise selling price per unit to

Reduce variable costs per unit to

Reduce fixed costs to

eTextbook and Media