B&B produces and sells one single product: BT5. The production capacity of B&B is 80,000 units. Annual sales volume expected in 2021 is 68,000 units.

The following information is estimated for 2021: selling price per unit: $48, variable cost per unit: $36, and annual fixed costs: $420,000.

1. What would be the BEP in units if selling price increases by $3 and the expected sales in 2021 is 68,000 units?
2. What would be the BEP in units if variable costs increase by $2 per unit and annual fixed costs decrease by $100,000 (assume original selling price and expected sales do not change)