JJ Ltd manufactures a product which has a selling price of 14, a variable cost of 6 per unit. The company incurs annual fixed costs of 24,400. Annual sales demand is 8,000 units. New production methods are under consideration, which would cause a 30 per cent increase in fixed costs and a reduction in variable cost to 5 per unit. The new produc- tion methods would result in a superior product and would enable sales to be increased to 8,500 units per annum at a price of 15 each. If the change in production methods were to take place, the breakeven output level would be: (A) 122 units higher (B) 372 units higher (C) 610 units lower (D) 915 units higher