CytaTech produces and sells a specialized cordless telephone.

The companys contribution income statement for last month is given below:

Sales (20,000 units at 60 per unit) 1,200,000

Variable costs (20,000 units at 45 per unit) (900,000)

Contribution margin 300,000

Fixed costs (240,000)

NET PROFIT 60,000

Required

A) Calculate the break even point in units AND explain the meaning of your answer.

B) Calculate how many units must CytaTech must sell in order to have a net profit of 100,000.