The Crass Company uses cost-plus pricing with a 40% mark-up. The company is currently selling 20,000 units at $21 per unit. Each unit has a variable cost of $10. In addition the company incurs $100,000 in fixed costs annually. If demand falls to 16,000 units how much will the company have to charge per unit in order to earn the same annual profit?
A. $22.50
B. $21.75
C. $22.75
D. $23.75