Problem from my engineering economy class.

Suppose ABC Corporation has a production (and sales) capacity of $1,000,000 per month. Its fixed costsover a considerable range of volumeare $35,000 per month, and the variable costs are $0.50 per dollars of sales. (a) What would the effect on of decreasing the variable cost per unit by 25%, if fixed costs thereby increased by 10%?(10pts) (b) What would be the effect on if the fixed costs were decreased by 10% and the variable cost per unit were increased by the same percentage?(10pts)