Bruell Electronics Co. is developing a new product, surge protectors for high-voltage electrical flows. The following cost information relates to the product:

                           Unit Costs

Direct materials               $3.25

Direct labor                     4.00

Distribution                      .75

The company will also be absorbing $120,000 of additional fixed costs associated with this new product. A corporate fixed charge of $20,000 currently absorbed by other products will be allocated to this new product.

If the selling price is $14 per unit, the breakeven point in units (rounded to the nearest hundred) for surge protectors is

A. 10,000 units.

B. 15,000 units.

C. 20,000 units.

D. 8,500 units.