Margin safety ratio, Cost Accounting

Assignment Help:

Small Steps sells step stools. Their budget information is shown below.

selling price: $40 per stool
Variable expense:$30 per stool
Fixed Expense:$24,000

use the above information to answer the following questions.
1. Draw a CVP Graph for Small Steps and label the parts.
2. Calculate the Contribution Margin and contribution margin ratio.
3. Calculate Break Even in Units
4. How many steps stools would small steps need to sell to reach a profit of $10,000?
5. If they have a profit (net income) of $10,000 what is their Margin Safety Ratio?

 


Related Discussions:- Margin safety ratio

MATERIALCOSTING, what are the material management questions

what are the material management questions

What would be the balance in the paid-in capital, Horton Co. was organized ...

Horton Co. was organized on January 2, 2010, with 500,000 authorized shares of $10 par value common stock. During 2010, Horton had the following capital transactions: January 5-iss

Net cash inflow, Holmes Electronics' Canadian Branch will help introduce in...

Holmes Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many mil

Cost accounting data and principles, Questions What are your recommenda...

Questions What are your recommendations to Ted Lapres? What aspects should he keep, what should he change, and in what sequence should he make the changes? • Do you think the D

Differential exploitation account, initial stock.=21,926,150 purchases.=361...

initial stock.=21,926,150 purchases.=361,550,000 other expenses=207,000,000 operatig profit=34,500,000 sqles=600,000,000 disc received=23,976,150 final stock=1000,000 variable exp

Cash flow statement, Keyser Beverage Company reported the following items i...

Keyser Beverage Company reported the following items in the most recent year. Net income $40,630 Dividends paid 5,390 Increase in accounts receivable 12,130 Increase i

Internal control activities regarding replacement purchases, Your firm is t...

Your firm is the auditor of Easy Hire Pty Ltd (Easy Hire).the company hires out equipment to industries such as construction, engineering & event management. It has 76 branches nat

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd