The popeye company sells its product for $25 per unit. The variable expenses are $15 per unit.

The popeye company sold 40,000 units last year and reported the following results:

Sales (40,000 balls) $ 1,000,000

Variable expenses 600,000

Contribution margin 400,000

Fixed expenses 265,000

Net operating income $ 135,000

The 29445-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 popeye company have to sell next year to earn the same net operating income, $135,000, as last year? (Round your answer, if necessary, to the closest number below.)

Multiple Choice

41,563 units

42,875 units

48,625 units

47,313 units