Homework Help is Here – Start Your Trial Now!
Business
Accounting
HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 (10,400 units at $280 each) le costs (10,400 units at $210 each) bution margin costs e $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 Hudson has a target income of $170,000. What amount of sales (in n achieves its target income, what is its margin of safety (in percent)

HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 (10,400 units at $280 each) le costs (10,400 units at $210 each) bution margin costs e $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 Hudson has a target income of $170,000. What amount of sales (in n achieves its target income, what is its margin of safety (in percent)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

ni.6

HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,400 units at $280 each) Variable costs (10,400 units at $210 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $170,000. 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. $ 2,608,000 X 1. Dollar sales for target income 2. Margin of safety $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 23.0 %
Transcribed Image Text:HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,400 units at $280 each) Variable costs (10,400 units at $210 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $170,000. 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. $ 2,608,000 X 1. Dollar sales for target income 2. Margin of safety $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 23.0 %
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS