Fantasmas Incorporated Had the Following Information Suppose Fantasmas Could Reduce Setup Costs by $300 Per Setup

Multiple Choice

Fantasmas Incorporated had the following information: $\begin{array}{lrr}\text { Activity Driver } & \text { Unit Variable Cost } & \text { Level of Activity Drive } \\\text { Units sold } & \$ 20&-- \\\text { Setups } & 1,200 &60\\\text { Engineering hours } & 52&1,500\\\\\text { Other data: }\\\text { Total fixed costs (traditional) } & \$ 600,000 \\\text { Total fixed costs }(A B C) & \$ 360,000 \\\text { Unit selling price } & \$60\end{array}$
Suppose Fantasmas could reduce setup costs by $300 per setup and could reduce the number of engineering hours needed to 1,400 hours. How many units must be sold to break even in this case?

A) 7,243 units
B) 24,340 units
C) 12,170 units
D) 8,554 units