Kea Company manufactures and sells a specialised cordless telephone for high electromagnetic radiation environments. The company's contribution format income statement for 2020 is given below:

	$
Sales (20,000 phones)	1,200,000
Variable expenses	900,000
Contribution margin	300,000
Fixed expenses	240,000
Net operating income	$ 60,000

Management is anxious to increase the company's profit and has asked for an analysis of a number of items.

Required:

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(a) Calculate the company's breakeven point in unit sales.

(4 marks)

(b) Assume that next year management wants the company to earn a before-tax profit of at least $90,000. How many phones will have to be sold to earn this target profit?