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Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,400 units at $225 each) Variable costs (11,400 units at $180 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $150,000. What amount of sales (in dollars) is needed to produce. 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. 1. Dollar sales for target income 2. Margin of safety $ 2,565,000 2,052,000 513,000 360,000 $ 153,000 %

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,400 units at $225 each) Variable costs (11,400 units at $180 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $150,000. What amount of sales (in dollars) is needed to produce. 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. 1. Dollar sales for target income 2. Margin of safety $ 2,565,000 2,052,000 513,000 360,000 $ 153,000 %

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 reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,400 units at $225 each) Variable costs (11,400 units at $180 each) Contribution margin Fixed costs Income $ 2,565,000 2,052,000 513, 000 360,000 $ 153,000 1. Assume Hudson has a target income of $150,000. What amount of sales (in dollars) is needed to produce 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. 1. Dollar sales for target income 2. Margin of safety
Transcribed Image Text:Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,400 units at $225 each) Variable costs (11,400 units at $180 each) Contribution margin Fixed costs Income $ 2,565,000 2,052,000 513, 000 360,000 $ 153,000 1. Assume Hudson has a target income of $150,000. What amount of sales (in dollars) is needed to produce 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. 1. Dollar sales for target income 2. Margin of safety
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