Gary King operates a kiosk in downtown Chicago, at which he sells one style of baseball hat. He buys the hats from a supplier for $20 and sells them for $25. Garys current breakeven point is 16,000 hats per year.

If Gary wants to earn $38,500 in net income, how many hats must he sell, assuming a 30% tax rate? (Use the rounded contribution margin per unit calculated in the previous part.)