Niolio has budgeted the following amounts for its next fiscal year:

Total fixed expenses	$1,700,000
Selling price per unit	$65
Variable expenses per unit	$15

If it can reduce fixed expenses by $110,500, by how much can variable expenses per unit increase and still allow the company to maintain the original breakeven sales in units?

A. $53.25

B. $38.25

C. $11.75

D. $ 15.00