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Management at the Forrest Company currently sells its products for $225 per unit and is contemplating a 40% increase in the selling price for the next year

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Management at the Forrest Company currently sells its products for $225 per unit and is contemplating a 40% increase in the selling price for the next year. Variable costs are currently 25% of sales revenue and are not expected to change in dollar amount on a per unit basis next year (the company will still pay the same variable cost per unit). Fixed expenses are $120,750 per year.

If fixed costs were to decrease 10% during the current year and the new selling price goes into effect, how many units will need to be sold to breakeven?

A) 420 units

B) 358 units

C) 908 units

D) 132,825 units