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 $28 each, and her variable costs are $18 per basket. She incurs $12,500 in fixed costs each year. How many baskets will Marissa have to sell this year if she wants to earn $29,300 in operating income?
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 $28 each, and her variable costs are $18 per basket. She incurs $12,500 in fixed costs each year. How many baskets will Marissa have to sell this year if she wants to earn $29,300 in operating income?
Chapter16: Tax Research
Section: Chapter Questions
Problem 64DNC
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100%
Opereting income?
Transcribed Image Text: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 $28 each, and her variable costs are $18
per basket. She incurs $12,500 in fixed
costs each year.
How many baskets will Marissa have to sell
this year if she wants to earn $29,300 in
operating income?
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