Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,500 units at $225 each) Variable costs (10,500 units at $180 each) Contribution margin Fixed costs Income Amount of sales Margin of safety Assume Hudson has a target income of $171,000. 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 your answer to 1 decimal place.) $ 2,362,500 1,890,000 472,500 369,000 $ 103,500 %
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,500 units at $225 each) Variable costs (10,500 units at $180 each) Contribution margin Fixed costs Income Amount of sales Margin of safety Assume Hudson has a target income of $171,000. 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 your answer to 1 decimal place.) $ 2,362,500 1,890,000 472,500 369,000 $ 103,500 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hudson Company... (see picture)
Transcribed Image Text:Hudson Company reports the following contribution margin income statement.
Sales (10,500 units at $225 each)
Variable costs (10,500 units at $180 each)
Contribution margin
Fixed costs
Income
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
1. Amount of sales
2. Margin of safety
$ 2,362,500
1,890,000
1. Assume Hudson has a target income of $171,000. 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)? (Round your answer to 1 decimal place.)
%
472,500
369,000
$ 103,500
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