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 (11,600 units at $225 each)Variable costs (11,600 units at $180 each)Contribution marginFixed costsIncome$ 2,610,0002,088,000522,000315,000$ 207,0001. 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.)

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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