Hudson Company reports the following contribution margin income statement. Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 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 1. Assume Hudson has a target income of $161,000. 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.) $ 3,210,000 2,568,000 - 642,000 504,000 $ 138,000 %
Hudson Company reports the following contribution margin income statement. Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 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 1. Assume Hudson has a target income of $161,000. 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.) $ 3,210,000 2,568,000 - 642,000 504,000 $ 138,000 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Hudson Company reports the following contribution margin income statement.
Sales (10,700 units at $300 each)
Variable costs (10,700 units at $240 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
1. Assume Hudson has a target income of $161,000. 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.)
$ 3,210,000
2,568,000 -
642,000
504,000
$ 138,000
%
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