8. Zinc Energy Resources Co., a new division of a major battery manufacturing company, recently patented a new battery that uses zinc-air technology. The unit costs for the zinc-air battery are as follows: the battery housing is $8, materials are $6 and direct labour is $6 per unit. Retooling the existing factory facilities to manufacture the zinc-air batteries amounts to an additional $1 million in equipment costs. Annual fixed costs include sales, marketing and advertising expenses of $1 million; general and administrative expenses of $1 million; and other fixed costs totalling $2 million. Answer the following questions:

a. What is the total per-unit variable cost associated with the new battery?

b. What are the total fixed costs for the new battery?

c. If the price for the new battery was set at $35, what would the break-even point be?