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Small Steps sells step stools. Their budget information is shown below.
selling price: $40 per stoolVariable expense:$30 per stoolFixed 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 Units4. 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?
Reserves and surplus or retained earnings usually occur out of profitable operations. This is a surplus not distributed through the firm as dividends. Conversely, these are profits
how to prepare that project
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ASSUMPTIONS OF BREAK EVEN ANALYSIS 1. Fixed costs for all time remain constant. 2. All costs are divided into fixed and variable costs. 3. Selling price will not alter de
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