Tonykinn Company is contemplating marketing a new product. Fixed costs will be $800,000 for production of 75,000 units or less and $1,200,000 if production exceeds 75,000 units. The variable cost ratio is 60% for the first 75,000 units. Variable costs will decrease to 50% of sales for units in excess of 75, If the product is expected to sell for $25 per unit, how many units must Tonykinn sell to break even?
a. 120,000
b. 111,000
c. 96,000
d. 80,000