1. Compute break-even point in units. 2. Compute break-even point in sales dollars.
1. Compute break-even point in units. 2. Compute break-even point in sales dollars.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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 (11,200 units at $280 each).
Variable costs (11,200 units at $210 each)
Contribution margin
Fixed costs
Income
1. Compute break-even point in units.
2. Compute break-even point in sales dollars.
1. Break-even units
2. Break-even sales dollars
units
$ 3,136,000
2,352,000
784,000
567,000
$ 217,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d2d698d-09ca-4644-acfc-cb348702643f%2F48ab1221-e0c2-4df2-b39a-fcc689d86b6b%2Fi2cnar_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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 (11,200 units at $280 each).
Variable costs (11,200 units at $210 each)
Contribution margin
Fixed costs
Income
1. Compute break-even point in units.
2. Compute break-even point in sales dollars.
1. Break-even units
2. Break-even sales dollars
units
$ 3,136,000
2,352,000
784,000
567,000
$ 217,000
![Required information
[The following information applies to the questions displayed below.]
Hudson Company reports the following contribution margin income statement.
Sales (11,200 units at $280 each)
Variable costs (11,200 units at $210 each)
Contribution margin
Fixed costs
Income
HUDSON COMPANY
Contribution Margin Income Statement.
For Year Ended December 31
1. Amount of sales
2. Margin of safety
$ 3,136,000
2,352,000
1. Assume Hudson has a target income of $156,000. 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.)
%
784,000
567,000
$ 217,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d2d698d-09ca-4644-acfc-cb348702643f%2F48ab1221-e0c2-4df2-b39a-fcc689d86b6b%2Fuiw5w3l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Hudson Company reports the following contribution margin income statement.
Sales (11,200 units at $280 each)
Variable costs (11,200 units at $210 each)
Contribution margin
Fixed costs
Income
HUDSON COMPANY
Contribution Margin Income Statement.
For Year Ended December 31
1. Amount of sales
2. Margin of safety
$ 3,136,000
2,352,000
1. Assume Hudson has a target income of $156,000. 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.)
%
784,000
567,000
$ 217,000
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