14.21 Gulf Gadgets Limited manufactures chess sets. Each chess set sells for £185. Variable costs of manufacture are £78. The company’s directors are currently setting the budget for 2013. Fixed costs are expected to be £65 000. The selling price of a chess set will rise to £187 and the variable costs of manufacture are expected to increase by 10%.

The break-even point for 2013 is estimated (to the nearest whole unit) at:

a) 607

b) 655

c) 642

d) 596.