A company manufactures a product in batches and then holds the items produced in finished goods inventory until they are sold. It is capable of replenishing the product at the rate of 100,000 units/year, but annual sales demand is just 40,000 units. The cost of setting up a batch production run is $1,500 and the cost of holding a unit of the product in inventory is $25/year. What is the economic batch quantity for manufacturing this product?