Assume The Hershey Company is considering the desirability of producing a new chocolate candy called Pleasure Bombs. Before purchasing the new equipment required to manufacture Pleasure Bombs, the company performed the following analysis:

Unit selling price. $2.50

Variable manufacturing and selling costs (1.85)

Unit contribution margin $0.65

Annual fixed costs Depreciation (straight-line for 5 years) $62,000

Other (all cash) 48,500

Total $110,500

Because the expected annual sales volume is 200,000 units, Hershey decided to undertake the production of Pleasure Bombs. This required an immediate investment of $310,000 in equipment that has a life of four years and no salvage value. After four years, the production of Pleasure Bombs will be discontinued.

With a 20% tax rate and a 8% time value of money, determine the annual unit sales required to break even on a time-adjusted basis. Assume straight-line depreciation is used to determine tax payments.

Round UPto the nearest unit.

___________ units