Grosheim Incorporated has fixed expenses of $211,000 per year. Rightnow, Grosheim Incorporated is selling its products for $100 per unit. Management is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 20% of sales revenue and are not expected to change in dollar amount on a per unit basis next year(the company will pay the same amount for variable costs nextyear).

If fixed costs increase 30% nextyear, and the new selling price per unit goes intoeffect, how many units will need to be sold tobreakeven?

A.

1,714 units

B.

2,286 units

C.

2,110 units

D.

274,300 units