Tomas Corporation produces skincare products for men and women. An incredibly smooth moisturizing cream has come to the market that the company is anxious to produce and sell. Enough capacity exists in the companys plant to produce 40,000 units of the cream each month. Variable costs to manufacture and sell one unit would be P3.50, and fixed costs associated with the cream would total P340,000 per month. The companys Marketing Department predicts that demand for the new cream will exceed the 40,000 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed cost of P14,000 per month. Variable costs in the rented facility would total P4.00 per unit, due to somewhat less efficient operations than in the main plant. The new cream will sell for P12.00 per unit. The monthly break-even point for the new cream in units is:

Choices:

41,750

43,111

40,000

41,647

44,250