Yards-R-Us is considering the addition of a new line of organic fertilizer. It is expected that each application of fertilizer will sell for $16.50 and the variable operating cost per application will be $11.00. Total fixed operating costs are expected to be $40,000. The company has a 30% tax rate and will have interest expense associated with this line of $12,000. Yards-R-Us expects to sell 10,000 applications in the first year.

c. How many applications would Yards-R-Us need to sell to earn a target EBIT of $53,000?