Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the p

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Houston-based Advanced Electronics manufactures audio speakersfor desktop computers. The following data relate to the period justended when the company produced and sold 42,000 speaker sets:
Management is considering relocating its manufacturing facilitiesto northern Mexico to reduce costs. Variable costs are expected toaverage $18.00 per set; annual fixed costs are anticipated to be$1,992,000. (In the following requirements, ignore incometaxes.)
3. Assume that management desires toachieve the Mexican break-even point; however, operations willremain in the United States.a. If variable costs remain constant, by how much must fixed costschange?b. If fixed costs remain constant, by how much must unit variablecost change?