A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling $\$130000$

A certain manufacturer produces items for which the production costs consist of annual fixed costs totaling $\$130,000$ and variable costs averaging $\$8$ per item. If the manufacturer's selling price per item is $\$15,$ how many items must the manufacturer produce and sell to earn an annual profit of $\$150,000?$

(A) 2,858
(B) 18,667
(C) 21,429
(D) 35,000
(E) 40,000

Answer: E

Source: Official Guide

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