Grosheim Incorporated has fixed expenses of$213,000 per year. Rightnow, Grosheim Incorporated is selling its products for$250 per unit. Management is contemplating a40% increase in the selling price for the next year. Variable costs are currently20% 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 increase10% nextyear, and the new selling price per unit goes intoeffect, how many units will need to be sold tobreakeven?

A.

586 units

B.

852 units

C.

234,300 units

D.

781 units