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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 1. Dollar sales for target income 2. Margin of safety $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 23.0 %

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 1. Dollar sales for target income 2. Margin of safety $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 23.0 %

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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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. X Answer is complete but not entirely correct. $ 2,608,000 23.0 1. Dollar sales for target income 2. Margin of safety $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 %
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. X Answer is complete but not entirely correct. $ 2,608,000 23.0 1. Dollar sales for target income 2. Margin of safety $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 %
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