The Following Data Are Available for the South Division of Redride

Multiple Choice

The following data are available for the South Division of Redride Products,Inc.and the single product it makes:
$\begin{array}{|l|r|}\hline \text { Unit Selling Price } & \$ 20 \\\hline \text { Variable Cost per Unit } & \$ 12 \\\hline \text { Annual Fixed Costs } & \$ 280,000 \\\hline \text { Average Operating Assets } & \$ 1,500,000 \\\hline\end{array}$
How many units must South sell each year to have an ROI of 16%?

A) 52,000 units.
B) 65,000 units.
C) 240,000 units.
D) 1,300,000 units.