Homework Help is Here – Start Your Trial Now!
Business
Accounting
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 each) Contribution margin Fixed costs Pretax income HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 1. Amount of sales 2. Margin of safety Assume Hudson Co. has a target pretax income of $161,000 for 2020. What amount of sales (in dollars) is needed to produc target income? If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 dec place.) $3,210,000 2,568,000 642,000 504,000 $ 138,000 %

Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 each) Contribution margin Fixed costs Pretax income HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 1. Amount of sales 2. Margin of safety Assume Hudson Co. has a target pretax income of $161,000 for 2020. What amount of sales (in dollars) is needed to produc target income? If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 dec place.) $3,210,000 2,568,000 642,000 504,000 $ 138,000 %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

! Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 each) Contribution margin Fixed costs Pretax income 1. Amount of sales 2. Margin of safety Assume Hudson Co. has a target pretax income of $161,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? If Hudson achieves its target pretax income for 2020, 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 %
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 each) Contribution margin Fixed costs Pretax income 1. Amount of sales 2. Margin of safety Assume Hudson Co. has a target pretax income of $161,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? If Hudson achieves its target pretax income for 2020, 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 %
Assume the company is considering investing in a new machine that will increase its fixed costs by $40,000 per year and decrease its variable costs by $8 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine? $ 0 0
Transcribed Image Text:Assume the company is considering investing in a new machine that will increase its fixed costs by $40,000 per year and decrease its variable costs by $8 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine? $ 0 0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Pricing Decisions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS