Required information[The following information applies to the questions displayed below.]Hudson Company reports the following contribution margin income statement.HUDSON COMPANYContribution Margin Income StatementFor Year Ended December 31Sales (11,200 units at $280 each)Variable costs (11,200 units at $210 each)Contribution marginFixed costsIncome$ 3,136,0002,352,000784,000567,000$ 217,0001. Compute break-even point in units.2. Compute break-even point in sales dollars.1. Break-even units2. Break-even sales dollarsunits

The objective of this question is to calculate the break-even point in units and in sales dollars…

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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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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 (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costs Income 1. Amount of sales 2. Margin of safety 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.) $ 2,716,000 2,037,000 679,000 441,000 $ 238,000 %
A company reports the following contribution margin income statement. Contribution Margin Income Statement For Year Ended December 31 Sales (19,200 units at $22.50 each) Variable costs (19,200 units at $18.00 each) Contribution margin. Fixed costs Income The manager believes the company can increase sales volume to 22,000 total units by increasing advertising costs by $16,200. Required A Required B Complete this question by entering your answers in the tabs below. Contribution Margin Income Statement For Year Ended December 31 $ 432,000 345,600 Prepare a contribution margin income statement assuming the company incurs the additional advertising costs and sales volume increases to 22,000 units. Sales Variable costs Contribution margin 86,400 64,800 $ 21,600 Fixed costs Income
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 (11,600 units at $225 each) Variable costs (11,600 units at $180 each) Contribution margin Fixed costs Income $ 2,610,000 2,088,000 522,000 315,000 $ 207,000 1. Assume Hudson has a target income of $150,000. 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.)
Vala
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Gadubhai
Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 60,000 39,000 Net operating income 21,000 14,700 $ 6,300 Required: 5. If sales decline to 900 units, what would be the net operating income? Note: Round "Per Unit" calculations to 2 decimal places.
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,300 units at $175 each) Variable costs (11,300 units at $140 each) Contribution margin Fixed costs Income 1. Compute break-even point in units. 2. Compute break-even point in sales dollars. 1. Break-even units 2. Break-even sales dollars units $ 1,977,500 1,582,000 395,500 315,000 $ 80,500
2. Assume that the company expects sales of each product to decline to 41,000 units next year with no change in unit selling price. Prepare a contribution margin income statement for the next year (as shown above with columns for each of the two products). Note: Round "per unit" answers to 2 decimal places. Contribution margin Income (loss) HENNA COMPANY Contribution Margin Income Statement Carvings Mementos Units Total $ Per unit Total $ Per unit Total
Review the contribution margin income statements for Cover-to-Cover Company and Biblio Files Company on their respective Income Statements. Complete the following table from the data provided on the income statements. Each company sold 82,800 units during the year. Cover-to-Cover Company Biblio Files Company Contribution margin ratio (percent) Unit contribution margin Break-even sales (units) Break-even sales (dollars) $ %
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 32.00 19.00 $13.00 Sales (8,300 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 265,600 157,700 Required: (Consider each case independently): 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income 8 $ 107,900 55,200 $ 52,700 1. What would be the revised net operating income per month if the sales volume increases by 80 units? 2. What would be the revised net operating income per month if the sales volume decreases by 80 units? 3. What would be the revised net operating income per month if the sales volume is 7,300 units?
Rahul

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