The Scrimgeour Company manufactures and sells flag-poles. The unit selling price is fixed at £20 with variable costs of production of £8 per unit. Fixed production costs per period are £ 16000, and non-production overheads amount to a further

£8000 . Assuming a marginal cost basis of stock valuation calculate:

(a) the number of units which need to be sold to breakeven;

(b) the number of units which need to be sold to earn a profit of £6000 per period.