Slate was a professional classical guitar player until a motorcycle accident at left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for $705 each, and the fixed monthly operating costs are as follows:

Rent and utilities	$800
Wages and benefits to luthier	2,500
Other expenses	470

Slate's accountant told him about contribution margin ratios, and Slate understood clearly that for every dollar of sales,

$0.60 went to cover his fixed costs, and anything above that point was profit.Slate is planning to increase the sales price to $860.

What impact will the increase in sales price have on the breakeven point in units? (Round your answer up to the nearest whole guitar.)

A. It will go down from 9 to 7 units.

B. It will go down from 11 to 8 units.

C. It will stay the same.

D.It will go up from 8 to 11 units.