A New Product Will Sell in the Market for $12

A new product will sell in the market for $12.It costs $7 (unit variable cost) to manufacture on a new lathe machine.If the break-even quantity is 10,000 units,what is the annual fixed cost involved in acquiring the machine and in paying other fixed costs?

A) less than $40,000
B) greater than $40,000 but less than or equal to $55,000
C) greater than $55,000 but less than or equal to $70,000
D) greater than $70,000