1. Assume Hudson has a target income of $167.000. 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)? Note: Round your answer to 1 decimal place. > Answer is complete but not entirely correct. 1. Dollar sales for target income 2. Margin of safety 20.0
1. Assume Hudson has a target income of $167.000. 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)? Note: Round your answer to 1 decimal place. > Answer is complete but not entirely correct. 1. Dollar sales for target income 2. Margin of safety 20.0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:1. Assume Hudson has a target income of $167.000. 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)?
Note: Round your answer to 1 decimal place.
Answer is complete but not entirely correct.
1. Dollar sales for target income
2. Margin of safety
20.0
![Student question
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Hudson Company reports the
following contribution margin income
statement.
HUDSON COMPANY
Contribution Margin
Income Statement
For Year Ended
December 31
Sales (10,100 units at $
$300 each)
Variable costs (10,100
units at $240 each)
Contribution margin
Fixed costs
Income
3,030,000
2,424,000
606,000
468,000
$ 138,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3824b55-af29-4e78-943b-f923818c94e5%2Fdc29b0c0-05dc-42ea-88d8-35c90b4e0fd8%2Fzmmr3q7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Student question
Required information
Skip to question
[The following information applies to
the questions displayed below.]
Hudson Company reports the
following contribution margin income
statement.
HUDSON COMPANY
Contribution Margin
Income Statement
For Year Ended
December 31
Sales (10,100 units at $
$300 each)
Variable costs (10,100
units at $240 each)
Contribution margin
Fixed costs
Income
3,030,000
2,424,000
606,000
468,000
$ 138,000
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