3. Emily manufactures a product which has a selling price of 20 and a variable cost of 10 per unit. The company incurs annual fixed costs of 29,000. Annual demand is 9,000 units. New production methods are under consideration, which would cause a 1,000 increase in fixed costs and a reduction in variable cost to 9 per unit. The new production methods would result in a superior product and would enable sales to be increased to 9750 units per annum at a price of 21 each. If the change in production methods were to take place, the breakeven output level would be: A. 400 units higher B. 400 units lower C. 100 units higher D. 100 units lower