! Required 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 (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Income $ 3,024,000 2,268,000 756,000 567,000 $ 189,000 1. Assume Hudson has a target income of $162,000. 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.) 1. Amount of sales 2. Margin of safety %
! Required 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 (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Income $ 3,024,000 2,268,000 756,000 567,000 $ 189,000 1. Assume Hudson has a target income of $162,000. 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.) 1. Amount of sales 2. Margin of safety %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required 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 (10,800 units at $280 each)
Variable costs (10,800 units at $210 each)
Contribution margin
Fixed costs
Income
$ 3,024,000
2,268,000
756,000
567,000
$ 189,000
1. Assume Hudson has a target income of $162,000. 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.)
1. Amount of sales
2. Margin of safety
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F059a11c6-3bd6-4d98-b1c9-2b6c176b2080%2Ffc44552e-b678-42b2-857d-426bd7218f54%2F1etvdjw_processed.jpeg&w=3840&q=75)
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Required 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 (10,800 units at $280 each)
Variable costs (10,800 units at $210 each)
Contribution margin
Fixed costs
Income
$ 3,024,000
2,268,000
756,000
567,000
$ 189,000
1. Assume Hudson has a target income of $162,000. 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.)
1. Amount of sales
2. Margin of safety
%
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