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HUDSON COMPANY Contribution Margin Income Statement Sales (11,500 units at $225 each) For Year Ended December 31 Variable costs (11,500 units at $180 each) Contribution margin Fixed costs Income Exercise $ 2,587,500 2,070,000 517,500 360,000 $157,500

HUDSON COMPANY Contribution Margin Income Statement Sales (11,500 units at $225 each) For Year Ended December 31 Variable costs (11,500 units at $180 each) Contribution margin Fixed costs Income Exercise $ 2,587,500 2,070,000 517,500 360,000 $157,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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25 [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 (11,500 units at $225 each) Variable costs (11,508 units at $180 each) Contribution margin Fixed costs Income Exercise 18-11 (Alan) $ 2,587,500 2,070,000 517,500 360,000 $ 157,500
Transcribed Image Text:25 [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 (11,500 units at $225 each) Variable costs (11,508 units at $180 each) Contribution margin Fixed costs Income Exercise 18-11 (Alan) $ 2,587,500 2,070,000 517,500 360,000 $ 157,500
Compute break-even point in units. . Compute break-even point in sales dollars. Break-even units a Break-even sales dollars Anourt of sales Margin of salty units SAssume Hudson has a target income of $154,000. What amount of sales (in dollars) is needed to produce this target income? If Hudson achieves its target income, what is its margin of safety (in percent)? (Round answer to 1 decimal place.)
Transcribed Image Text:Compute break-even point in units. . Compute break-even point in sales dollars. Break-even units a Break-even sales dollars Anourt of sales Margin of salty units SAssume Hudson has a target income of $154,000. What amount of sales (in dollars) is needed to produce this target income? If Hudson achieves its target income, what is its margin of safety (in percent)? (Round answer to 1 decimal place.)
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