- Retooling of the factory will add a one time additional fixed cost of $1 million in equipmnmet. Annual fixed costs include sales, marketing and advertising expenses of $1 million, general and admin expenses of $ 1 million and other fixed costs totaling $2 million. (3 Marks) a. What is the total variable cost associated with the new battery? b. What are the total fixed costs of the new battery? c. If the price is set at $35 for the new battery what would the break even point be in units? In $ sales? 8. Prepare an Income Statement - label each line of the Income statement including the numbers you calculate ( 6 Marks) Sell 2000 units SP=$80perunit Cost of Goods =$60 per unit Fixed Administrative costs =$20,000 Marketing Expenses =$5000