The Young Company Has Gathered the Following Information for a Unit

Multiple Choice

The Young Company has gathered the following information for a unit of its most popular product:
$$\begin{array} { | l | r | } \hline \text { Direct materials } & \$ 12 \\\hline \text { Direct labor } & 6 \\\hline \text { Overhead (40\% variable) } & 10 \\\hline \text { Cost to manufacture } & 28 \\\hline \text { Desired markup (60\%) } & 14 \\\hline \text { Target selling price } & \$ 42 \\\hline\end{array}$$
The above cost information is based on 10,000 units.A distributor has offered to buy 2,000 units at a price of $32 per unit.The distributor claims this special order would not disturb regular sales at $42.Special packaging and other selling expenses would be an additional $0.50 per unit for the special order.How many units of regular sales could be lost before this contract is not profitable?

A) 0 units.
B) 950 units.
C) 1,000 units.
D) 2,000 units.