! quired information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costs Income $ 2,716,000 2,037,000 679,000 441,000 $ 238,000 1. Assume Hudson has a target income of $163,000. 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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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quired information
[The following information applies to the questions displayed below.]
Hudson Company reports the following contribution margin income statement.
Sales (9,700 units at $280 each)
Variable costs (9,700 units at $210 each)
Contribution margin
Fixed costo
Income
HUDSON COMPANY
Contribution Margin Income Statement.
For Year Ended December 31
1. Amount of sales
2. Margin of safety
$ 2,716,000
2,037,000
1. Assume Hudson has a target income of $163,000. 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.)
%
679,000
441,000
$ 238,000
Transcribed Image Text:05 quired information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. Sales (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costo Income HUDSON COMPANY Contribution Margin Income Statement. For Year Ended December 31 1. Amount of sales 2. Margin of safety $ 2,716,000 2,037,000 1. Assume Hudson has a target income of $163,000. 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.) % 679,000 441,000 $ 238,000
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