Option C is correct i.e. 374 units
Calculation:-
Variable cost per unit = 275 x 15% = $41.25
Revised sales price per unit = 275 x 1.40 = $385
Revised fixed cost = 142,500 - 10% = $128,250
Contribution per unit = 385 - 41.25 = $343.75
Breakeven units = revised fixed cost/contribution per unit
= 128,250/343.75
= 374 units
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