ABC Company has fixed costs of $300,000 per month. Total output per month is 150,000 units. Minimum pay for production line workers is $5.85 per hour, and total variable costs are currently $275,000 per month. If variable costs increase to $350,000 per month and production output increases to 250,000 per month, what are the average variable costs before and after the increase in production?

A. $1.83 per unit before and after the increase in production.

B. $2 per unit before and $1.20 per unit after the increase in production.

C. $3.83 per unit before and $2.60 per unit after the increase in production.

D. $1.83 per unit before and $1.40 per unit after the increase in production.