A company wants to drill two oil wells one at the off the coast of Abu Dhabi and the other at Dubai. The fixed cost of drilling a well at Abu Dhabi is $78000 and at Dubai is $92040. The variable cost for pumping out a barrel of crude oil at Dubai is $52 and at Abu Dhabi, $66. The revenue generated by each barrel of crude from Abu Dhabi is $82 and Dubai $64.

a) What is the breakeven point in units and in dollars for the well at Abu Dhabi?

b) What is the breakeven point in units and in dollars for the well at Dubai?

c) If the expected sales volume is 9000 barrels, which site should be chosen? Justify with rationale.

d) If the company wants a profit of $35000 from Dubai well, how many barrels should Dubai well sell?

e) The company accounts show that Dubai is earning lesser profit. So, the company decided to change Dubai's price such that profits of both wells are the same at 14000 barrels. What sales price should Dubai well charge for each barrel it sells?