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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?
DEMERITS OF BREAK EVEN POINT 1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc 2. Fixed cost, enti
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