The Motor Works is considering an expansion project with estimated annual fixed costs of $71,000, depreciation of $38,500, variable costs per unit of $16.25 and an estimated sales price of $26 per unit. How many units must the firm sell to break-even on a cash basis?
A. 7,282 units
B. 7,030 units
C. 7,510 units
D. 7,667 units
E. 10,842 units