Delphi Company has developed a new product that will be marketed for the first time during the next fiscal year.

Although the Marketing Department estimates that 35,000 units could be sold at $36 per unit, Delphi's

management has allocated only enough manufacturing capacity to produce a maximum of 25,000 units of the

new product annually. The fixed-costs associated with the new product are budgeted at $450,000 for the year,

which includes $60,000 for depreciation on new manufacturing equipment. Data associated with each unit of

product are presented below. Delphi is subject to a 40 percent income tax rate.

Variable Costs

Direct material $ 7.00

Direct labor 3.50

Manufacturing overhead 4 .00

Total variable manufacturing cost 14.50

Selling expenses 1 .50

Total variable cost $16 .00

the number of units of the new products that Delphi Company must sell during the next discal year in order to break even is.