WSR company is evaluating its performance on a product. WSR recently sold 70,000 units, generating sales revenue of $4,900,000. WSR's variable cost per unit and total fixed cost amounted to $20 and $2,800,000, respectively. Management is in the process of studying the dollar impact of various transactions and events, and desires answers to the followingindependentcases:

Case no. 1:Management wants to lower the firm's break-even point to 52,000 units.

Requirement 1: If all other costs remain constant, what must happen to fixed costs to achieve this objective?

Case no. 2:The company anticipates a $2 hike in the variable cost per unit.

Requirement 2:If all other costs remain constant and management desires to maintain the firm's current break-even point, what must happen to WSR's selling price? If selling price remains constant, what must happen to the firm's total fixed costs?