Demand for Blow Pops has increased to the point where Tootsie Roll Industries is considering building a new plant devoted solely to Blow Pops. Tootsie receives a wholesale price of$0.40 for each Blow Pop delivered to its distributor. The average cost of manufacturing a Blow Pop is $0.10. The plant and equipment will be purchased Dec.16, 2012, for a cost of $195,000 and is expected to have a useful life of 5 years. Assume that all revenues and expenses occur on Dec 16 of each year. If the plant ispurchased, then the firstyear's revenues and expenses will occur on Dec.16, 2013. What annual production quantity makes the present value of the operating profits equal to the initial outlay on the plant andequipment? (Assume that the quantity produced is the same everyyear.) The firm discounts cash flows at 7%. Ignore taxes.