Consider the following information for Cobalt Company:

Total fixed costs$150,000Unit selling price$50

Cost DriverData About Variables

Unit Variable CostLevel of Cost

DriverUnits sold$30-Setups1,20025Engineering hours401,100

Using the activity-based costing (ABC) equation, the units that must be sold to earn an operating income of $25,000 are:

a.12,640 units.

b.12,750 units.

c.12,450 units.

d.12,540 units.