Plastic Frames          Glass Frames

Budgeted unit sales       100,000              300,000

Sales price                 $10.00               $15.00

Direct materials             (2.00)                (3.00)

Direct labor                  (3.00)               (5.00)

Fixed overhead              (3.00)                (4.00)

Net income per unit          $2.00                $3.00

The budgeted unit sales equal the current unit demand, and total fixed overhead for the year is budgeted at $975,000. Assume that the company plans to maintain the same proportional mix. In numerical calculations, MultiFrame rounds to the nearest cent and unit. The total number of units MultiFrame needs to produce and sell to break even is

B. 177,273 units.

C. 150,000 units.

D. 300,000 units.