SMART LIMITED

INFORMATION FOR BREAKEVEN QUESTIONS

Smart Ltd is planning to market a new Toddler Tablet. The budgeted data for the product is as follows:

• Selling Price 38 per unit
• Variable Cost 13 per unit
• Fixed Costs 21,000
• Expected Sales Volume 6,000 units
• Targeted Profit 50,000

How many units would Koala Itd need to sell to achieve the Target Profit? Answer: With reference to SMART Itd, How many units would be required to Break Even? Answer: Give five (5) assumptions of Breakeven Analysis and explain circumstances under which these assumptions could become limitations