Orange company is considering introducing a new music player. The companys CFO has spent $20,000 to collect the following information about the proposed product.

The project has an anticipated economic life of 4 years.

The company has a fully depreciated machine sitting idle that can be sold for $50,000.

In addition to the existing machine, the company will have to purchase a new machine to produce the music player. The new machine has an up-front cost of $200,000. The machine will be depreciated on a straight-line basis to $0 over five years. The company anticipates it will be able to sell the project for $0 at the end of four years.

The project has total net working capital level requirements as follows:

Year 0: $20,000, Year 1: $25,000, Year 2: $30,000, Year 3: $35,000.

Fixed operating costs $50,000 per year.

Interest (of debt) costs will be $10,000 resulting from the project.

Variable costs are $120 per unit.

You expect this project to cannibalize existing projects operating cash flow by $20,000 per year.

The project has a beta of 2. The expected return on the market portfolio is 6% and the treasury rate is 2%.

The companys marginal tax rate is 40 percent, and the average tax rate is 35 percent.

If the company will sell their product for $220 per unit, what is the economic break-even level of sales (in units) for this product?