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Hudson Company reports the following contribution margin income statement. Sales (10,900 units at $225 each) Variable costs (10,900 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 1. Assume Hudson has a target income of $159,000. 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.) $ 2,452,500 1,962,000 490,500 387,000 $ 103,500 %

Hudson Company reports the following contribution margin income statement. Sales (10,900 units at $225 each) Variable costs (10,900 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 1. Assume Hudson has a target income of $159,000. 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.) $ 2,452,500 1,962,000 490,500 387,000 $ 103,500 %

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. Sales (10,900 units at $225 each) Variable costs (10,900 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 $ 2,452,500 1,962,000 490,500 387,000 $ 103,500 1. Assume Hudson has a target income of $159,000. 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.)
Transcribed Image Text:Hudson Company reports the following contribution margin income statement. Sales (10,900 units at $225 each) Variable costs (10,900 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 $ 2,452,500 1,962,000 490,500 387,000 $ 103,500 1. Assume Hudson has a target income of $159,000. 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.)
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