Review Questions (1) Sales forecasts indicate that a minimum of 5,000 units will be sold each year for the next three years. Two design modifications are being considered for the product. One modification will increase fixed costs by $30,000 per year, but will reduce variable costs by $8 per unit. the other modification will increase fixed costs by $7,000 and reduce variable costs by $6 per unit. Variable cost is currently $30 per unit. a) Which design modification should be adopted? b) At what point would you be indifferent to the two alternatives