Variable costs of producing widgets account for the cost of gas required to deliver the widgets to retailers. A widget producer finds the average cost of gas per widget. The expense equation was recently adjusted from E = 4.55q + 69,000 to E = 4.98q + 69,000 in response to the increase in gas prices.
a. Find the increase in the average cost per widget.
b. If the widgets are sold to retailers for $8.00 each, find the breakeven point prior to the adjustment in the expense function.
c. After the gas increase, the company raised its wholesale cost from $8 to $8.50. Find the breakeven point after the adjustment in the expense function. Round to the nearest integer.