Dorian Company produces and sells a single product. The product sells for $40 per unit and has a contribution margin ratio of 45%. The company's monthly fixed expenses are $28,800.

If the selling price is reduced by 5%, variable expenses reduced by $1.00, and fixed expenses increased to a total of $38,400, how many units would need to be sold to earn an operating income of $21,000? (Round your final answers to nearest whole number)

Multiple Choice

• 1,000 units.

• 3,494 units.

• 1,700 units.

• 2,950 units.