Oak recently sold 70,000 units generating sales revenues of $4,900,000 the company variable cost per unit ann total fixed cost amounted to $20 and $ 2,8000,000 respectively .
case 1 managment wants to lower the firm's break-even point to 52,000 units all other thing being equal . what must happen to fixed costs to archieve this objective?
case 2 the company anticipates a $ 2 hike in the variable cost per unit all other thing being equal if the selling price remains constant what must happen to the firm's total fixed costs?