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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 (10,000 units at $300 each) $ 3,000,000 Variable costs (10,000 units at $240 each) 2,400,000 Contribution margin 600,000 Fixed costs 420,000 Income $ 180,000 Assume Hudson has a target income of $166,000. 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)? Note: Round your answer to 1 decimal place.

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,000 units at $300 each) $ 3,000,000 Variable costs (10,000 units at $240 each) 2,400,000 Contribution margin 600,000 Fixed costs 420,000 Income $ 180,000 Assume Hudson has a target income of $166,000. 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)? Note: Round your answer to 1 decimal place.

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....
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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 (10,000 units at $300 each) $ 3,000,000 Variable costs (10,000 units at $240 each) 2,400,000 Contribution margin 600,000 Fixed costs 420,000 Income $ 180,000 Assume Hudson has a target income of $166,000. 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)? Note: Round your answer to 1 decimal place.
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