Dubai Corporations maximum capacity in operation cycle is around 14,900 units per year, against total costs of $875,000 and the lowest one is 6,000 units with a corresponding total cost of 60% of the high point. The fixed costs constitute of a significant portion.

Required:

1. Find out the variable cost per unit as spelled out by the HLM. Provide proof evidence as reflected by fixed cost under high point and low point of operation.

2. What would be the case if the associated costs of the high point reduced by 20 percent. Other things remain the same. Give a comparison in calculation between the results derived from part one and part two.