The 48588-TH company sells its product for $25 per unit. The variable expenses are $15 per unit.

The 48588-TH company sold 36,000 units last year and reported the following results:

Sales (36,000 balls) $ 900,000

Variable expenses 540,000

Contribution margin 360,000

Fixed expenses 263,000

Net operating income $ 97,000

The 48588-TH company considers reducing variable expenses per unit by 40% by investing in new equipment that would double the company's fixed expenses.

If the new equipment is purchased, how many units will the 48588-TH company have to sell next year to earn the same net operating income, $97,000, as last year? (Round your answer, if necessary, to the closest number below.)

Multiple Choice

40,250 units

42,875 units

41,563 units

38,938 units