Answer (B) is correct . Fixed costs of $45,000 ($25,000 + $20,000) should be divided by the unit contribution margin of $0.45 ($1.20 selling price – $0.25 – $0.30 – $0.20). The unit breakeven point is therefore 100,000 units ($45,000 ÷ $.45).
Answer (A) is incorrect because Dividing $45,000 fixed costs by $1.20 selling price results in 37,500 units.
Answer (C) is incorrect because Dividing $45,000 fixed costs by $.75 ($1.20 – .25 – .20) results in 60,000 units. The direct labor per unit should also be subtracted from the selling price.
Answer (D) is incorrect because The sales would have to be 100,000 units.
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If Gleason introduces rolls,its 
