Assume the price remains at $$40$ per unit and variable costs remain the same unit, but fixed costs increase by $16\%$ annually. Calculate the percentage increase in units sales sales required to achieve the same level of annual operating?

Wildhorse Corporation sells a single product for $40. Its management estimates the following revenues and costs for the year 2022: Net sales $610,000 Selling expenses-variable $24,400 Direct materials 109,800 Selling expenses-fixed 24,400 Direct labour 73,200 Administrative expenses-variable 12,200 Manufacturing overhead-variable 24,400 Administrative expenses-fixed 12,200 Manufacturing overhead-fixed 36,600