Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,200 units at $280 each) $ 3,136,000 Variable costs (11,200 units at $210 each) 2,352,000 Contribution margin 784,000 Fixed costs 567,000 Income $ 217,000 If Hudson achieves its target income, what is its margin of safety (in percent)? (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 (11,200 units at $280 each) $ 3,136,000 Variable costs (11,200 units at $210 each) 2,352,000 Contribution margin 784,000 Fixed costs 567,000 Income $ 217,000 If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
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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 (11,200 units at $280 each) | $ 3,136,000 |
---|---|
Variable costs (11,200 units at $210 each) | 2,352,000 |
Contribution margin | 784,000 |
Fixed costs | 567,000 |
Income | $ 217,000 |
If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)
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