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?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 37P
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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?
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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