Lunar Surf Boards Has Annual Fixed Costs of $5,000 with a Variable

Lunar Surf Boards has annual fixed costs of $5,000 with a variable cost of $10 per unit and a sales price of $20 per unit.Lunar expects to sell 1,000 units this year without much trouble.However,Lunar is concerned about the scenario that variable costs will increase 10% this year.If that happens,what will be Lunar's earnings before interest and taxes?

A) $6,000
B) $5,000
C) $4,000
D) none of the above