Use the following information for the Exercises below. (Algo)[The following information applies to the questions displayed below.]Hudson Company reports the following contribution margin income statement.HUDSON COMPANYContribution Margin Income StatementFor Year Ended December 31Sales (10,900 units at $225 each)Variable costs (10,900 units at $180 each)Contribution marginFixed costs$ 2,452,5001,962,000490,500387,000Income$ 103,500Exercise 18-12 (Algo) Target income and margin of safety LO C21. Assume Hudson has a target income of $159,000. What amount of sales (in dollars) is needed to produce this targetincome?2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)1. Amount of sales2. Margin of safety%

Introduction: A contribution margin income statement is an income statement in which all variable…

1. Assume Hudson has a target income of $159,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)

1. Assume Hudson has a target income of $159,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $60,000 a year, and he pays workers $100,000 in wages In return, he produces 300.000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 4 percent and that the farmer could otherwise have eamed $45,000 as a shoe salesman What is the farmer's economic prof? The peach farmer cams economic profit of $ (Enter your response as an integer) What is the farmer's accounting profit? The peach farmer eams accounting profit of $(Enter your response sanger)
Yakov lives in Montreal and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totalling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Yakov does not operate this boat business, he can work as a financial advisor and receive an annual salary of $50,000 with no additional monetary costs. No other costs are incurred in running this boat business. Identify each of Yakov's costs in the following table as either an implicit cost or an explicit cost of selling boats. Implicit Cost Explicit Cost The rental income Yakov could receive if he chose to rent out his showroom The wholesale cost for the boats that Yakov pays the manufacturer The salary Yakov could earn if he worked as a financial…
Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $50,000 a year, and he pays workers $100,000 in wages. In return, he produces 250,000 baskets of peaches per year, which sell for $4.00 each. Suppose the interest rate on savings is 3 percent and that the farmer could otherwise have earned $45,000 as a shoe salesman. What is the farmer's economic profit? The peach farmer earns economic profit of $. (Enter your response as an integer.) What is the farmer's accounting profit? The peach farmer earns accounting profit of $ (Enter your response as an integer.)
Note: don't use chat gpt.
A6.
John has the following utility function U(C₁, C2) = min{c₁ + ac2, C2}, where C₁ and c₂ are his consumption in periods 1 and 2, respectively and a is some positive constant. Suppose John has $100 income in period 1 and $105 income in period 2. Prices in both periods are $1. Question 2 Part al Suppose a = 2. If John can freely borrow and lend at 5% interest rate what would be his optimal consumption in both periods? 1 Question 2 Part a2 Suppose a = 2. Now, John can lend at 5% interest rate, but can't borrow at all. What would be his optimal consumption in both periods? Question 2 Part bl Suppose a 0.5. If John can freely borrow and lend at 5% interest rate what would be his optimal consumption in both periods? Question 2 Part b2 Suppose a 0.5. Now, John can lend at 5% interest rate, but can't borrow. What would be his optimal consumption in both periods?
5-2 Net Present Value Suppose an initial investment of $100 will return $50/year for three years (assume the $50 is received each year at the end of the year). Is this a profitable investment if the discount rate is 20%?
(Use this information to answer qustion 13 - 16) Suppose a household solves the following two-period consumption-savings problem max u(c1) + Bu(c2) {C1,C2} s.t. aw Y1 - C1 C2Y2 = (1+r) a with u(c) = √c where c₁ is consumption at time 1, c2 is consumption at time 2, ₁ is houshold income at time 1, y2 is houshold income at time 2 and w is the initial wealth. Suppose the incomes of the household are $50 in time 1 and $210 in time 2. The initial wealth is $100, the discount factor is 0.975 and interest rate is 5%. Solve for the household's choice of C1. (a) 125.12 (b) 126.58 (c) 175.16 (d) 341.88
2. An individual has an intertemporal utility function that is rational, monotonic, and strictly convex. She can borrow/lend at the interest rate, r, but does not have access to human capital. She is currently consuming a bundle such that MRSx₁x2 >1+r. How many of the following statements COULD BE true? [HINT: try drawing a picture] 0 X1x2 The bundle is optimal (i.e. maximizes her utility). If the individual is consuming both goods, she could do better by consuming less today and consuming more tomorrow. She is at a corner solution in which she only consumes tomorrow. a. 1 b. 2 c. 3 V. d. None of the above statements could be true.
Suppose a farmer in Georgia begins to grow peaches He uses $1,000,000 in savings to purchase land, he rents equipment for $80,000 a year, and he pays workers $150,000 in wages. In return, he produces 100,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 3 percent and that the farmer could otherwise have earned $25,000 as a shoe salesman What is the famer's economic profit? The peach farmer earns economic profit of $ (Enter your response as an integer.) What is the farmer's accounting profit? The peach famer eams accounting profit of $ (Enter your response as an integer.)
Hua Xing runs a lawn care service. Buying an additional riding lawn mower will cost $3,000 but would allow her firm to earn $1,000 of additional revenue each year for the next four years. She expects marginal efficiency of capital to be at least 10%. Which statement is an accurate description of this investment opportunity? a) Hua Xing should make the investment because turning $3,000 into $4,000 provides a rate of return of 33%. b) Hua Xing should not make the investment because it has a negative net present value. c) Hua Xing should not make the investment because it provides only a 5.16% return on investment. Od) Hua Xing should make the investment because the internal rate of return exceeds 10%.