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

Total annual sales revenue, Mr. Homer Simpson, President and Chief Executiv...

Mr. Homer Simpson, President and Chief Executive Officer of Duff's Beer Making Supplies Inc. recently hired you as the new budget analyst for his company.  As your first duty, he h

Compute the annual depreciation charges, On January 1, 2012, a machine was ...

On January 1, 2012, a machine was purchased for $197,100. The machine has an estimated salvage value of $13,140 and an estimated useful life of 5 years. The machine can operate for

Computerized packages, types of computerized packages .its cost .features s...

types of computerized packages .its cost .features size of the business is intended to service

Depreciation (to be computed) by slm method, sabonis consmetics co. purchas...

sabonis consmetics co. purchased machinery on december 31,2011, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each dec 31. an as

Sources and uses of cash, There are different activities undertaken through...

There are different activities undertaken through a business that prove to be either source or use of cash. These can be categorizes under three broad categories that are: investin

Product costing, scope and limitations of product costing

scope and limitations of product costing

Estimate the initial after-tax cash outlay, Shubenacadie Inc. is currently ...

Shubenacadie Inc. is currently considering a project with a 5-year life that it believes has the potential to return the company to profitability. Based on the results from a marke

Overhead analysis, allocate the overheads to the three departments and do t...

allocate the overheads to the three departments and do the secondary allocation of service departments

Calculate discounted cash flow, The Integrated Management Project is to be ...

The Integrated Management Project is to be based on an organisation, a strategic business unit, or profit centre that has good potential for growth and development. The brief is to

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