Sabina and Associates Has the Following Current Year Costs $\begin{array}{ll} \text { Variable costs } &\text { \( \$ 4 \) per unit }\\ \text {Fixed costs } &\$20000\\\end{array}$

Essay

Sabina and Associates has the following current year costs:
$\begin{array}{ll} \text { Variable costs } &\text { \( \$ 4 \) per unit }\\ \text {Fixed costs } &\$20000\\\end{array}$

Next year,the company plans to enter into an arrangement with a supplier that will result in a 15 per cent decrease in variable costs.They also plan on reducing their rental space,which will decrease fixed costs by 10 per cent.
Required:
A. What will be the new equation to predict total costs?
B. If next year's production is expected to be 10000 units, what will be total estimated costs?