A company that sells its single product for $40 per unit uses cost-volume-profit analysis in its planning. The company's after-tax net income for the past year was $1,188,000 after applying an effective tax rate of 40%. The projected costs for manufacturing and selling its single product in the coming year are shown below.

Variable cost per unit:   

Direct material                       $5.00

Direct labor                           4.00

Manufacturing overhead               6.00

Selling and administrative costs        3.00

Total variable cost per unit          $18.00

Annual fixed operating costs:   

Manufacturing overhead            $6,200,000

Selling and administrative costs    3,700,000

Total annual fixed cost             $9,900,000

The company has learned that a new direct material is available that will increase the quality of its product. The new material will increase the direct material costs by $3 per unit. The company will increase the selling price of the product to $50 per unit and increase its marketing costs by $1,575,000 to advertise the higher-quality product. The number of units the company has to sell in order to earn a 10% before-tax return on sales would be

A. 478,125 units.

B. 412,500 units.

C. 337,500 units.

D. 346,875 units.