105. Bulusan Company normally produces and sells 30,000 units of E14 each month. E14 is a small electrical relay used in the automotive industry as a component part in various products. The selling price is P22 per unit, variable costs are P14 per unit, xed manufacturing overhead costs total P150,000 per month, and xed selling costs total P30,000 per month. Employment-contract strikes in the companies that purchase the bulk of the E14 have caused Bulusan Company's sales to temporarily drop to only 9,000 units per month. Bulusan Company estimates that the strikes will last for about two months, after which time sales of E14 should return to normal. Due to the current low level of sales, however, Bulusan Company is thinking about closing down its own plant during the two months that the strikes are on. If Bulusan Company does close down its plant, it is estimated that xed manufacturing overhead costs can be reduced to P105,000 per month and that xed selling costs can be reduced by 10%. Start-up costs at the end of the shutdown period would total P8,000. Since Bulusan Company uses just-in-time production method, no inventories are on hand. At what level of unit sales for the two-month period should Bulusan Company be indi'erent between closing the plant or keeping it open? A. 11,000 C. 10,000 B. 24,125 D. 8,000