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 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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