Selling price ksh 6, Variable production cost ksh 1.20, variable selling cost ksh 0.40, fixed production cost kshs 4, fixed selling cost ksh 0.80, Budgeted production and sales for the year are 10,000 units.It is now expected that the variable production cost per unit and selling price per unit will each increase by 10%and fixed production cost rise by 25%.What will be the new breakeven point to the nearest whole unit?

Select one:

a. 12,397 units

b. 8,788 units

c. 11,885 units

d. 11,600 units