Answer the following questions using the information below:

Warne's Flipper Company sells several products. Information of average revenue and costs is as follows:

Selling price per unit $25.00

Variable costs per unit:

Direct material $5.00

Direct manufacturing labour $1.80

Manufacturing overhead $0.80

Selling costs $2.00

Annual fixed costs $96 000

The number of units that Warne's Flipper must sell each year to break even is:

Select one:

A. 6234 units

B. 12 896 units

C. 16 358 units

D. indeterminable