Nike is considering purchasing a new machine to produce its high-flight line of shoes. The machine has an economic life of five years and will be depreciated over that time using the straight-line method to a zero salvage value for income tax purposes. The machine will have a $40,000 residual value.

The machine costs $575,000 and working capital of $75,000 will be needed at all times to maintain production schedules. At the project's end, the working capital can be completely removed. Each pair of high-flight shoes will sell for $50 with a variable cost of $14 per pair. An extra $195,000 of fixed costs per year will be necessary to produce the shoes.

The company has a 35% average income tax rate and a marginal income tax rate of 40%. Its after tax cost of capital is 16%.

Assuming a constant number of shoes sold each year, what is the minimum number of pairs the company must sell annually to justify on their project?