A manufacturer's contribution margin income statement for the year follows. Sales ($10 per unit x 10,000 units) Variable costs Contribution margin Fixed costs Income Selling price per unit Units sold Change in units $100,000 60,000 40,000 30,000 $10,000 $10 10,000 200 Required: Prepare a contribution margin income statement if the number of units sold (a) increases by 200 units and (b) decreases by 200 units. Contribution Margin Income Statement For Year Ended December 31 sold sold
A manufacturer's contribution margin income statement for the year follows. Sales ($10 per unit x 10,000 units) Variable costs Contribution margin Fixed costs Income Selling price per unit Units sold Change in units $100,000 60,000 40,000 30,000 $10,000 $10 10,000 200 Required: Prepare a contribution margin income statement if the number of units sold (a) increases by 200 units and (b) decreases by 200 units. Contribution Margin Income Statement For Year Ended December 31 sold sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hudson Company reports the following contribution margin income statement. Hudson Company reports the following contribution margin income statement.A manufacturer's contribution margin income statement for the year
follows. Required: Prepare a contribution margin income statement if the number of units sold (a) increases by 200 units and (b) decreases by 200 units. HUDSON COMPANY Contribution Margin Income Statement For Year Ende
December 31 Required: 1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent) ?
Margin of safety
Transcribed Image Text:A manufacturer's contribution margin income statement for the year follows.
Sales ($10 per unit x 10,000 units)
Variable costs
Contribution margin
Fixed costs
Income
Selling price per unit
Units sold
Change in units
$100,000
60,000
40,000
30,000
$10,000
$10
10,000
200
Required:
Prepare a contribution margin income statement if the number of units
sold (a) increases by 200 units and (b) decreases by 200 units.
Sales
Variable costs
Contribution margin
Fixed costs
Income
Contribution Margin Income Statement
For Year Ended December 31
sold
sold
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