Required information Use the following information for the Exercises below. (Algo) [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 (10,900 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Income 1. Dollar sales for target income 2. Margin of safety $ 2,452,500 1,962,000 490,500 387,000 $ 103,500 Exercise 5-12 (Algo) Target income and margin of safety LO C2 1. Assume Hudson has a target income of $159,000. 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)? Note: Round your answer to 1 decimal place. % "
Required information Use the following information for the Exercises below. (Algo) [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 (10,900 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Income 1. Dollar sales for target income 2. Margin of safety $ 2,452,500 1,962,000 490,500 387,000 $ 103,500 Exercise 5-12 (Algo) Target income and margin of safety LO C2 1. Assume Hudson has a target income of $159,000. 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)? Note: Round your answer to 1 decimal place. % "
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vishnu
![Required information
Use the following information for the Exercises below. (Algo)
[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 (10,900 units at $225 each)
Variable costs (10,900 units at $180 each)
Contribution margin
Fixed costs
Income
1. Dollar sales for target income
2. Margin of safety
$ 2,452,500
1,962,000
490,500
387,000
$ 103,500
Exercise 5-12 (Algo) Target income and margin of safety LO C2
1. Assume Hudson has a target income of $159,000. 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)?
Note: Round your answer to 1 decimal place.
%
"](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52b49186-220f-49f2-b9b8-a3244825850d%2F21e39144-fc88-4981-bbc5-9e40cdfd0ee1%2F79hhrdr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Use the following information for the Exercises below. (Algo)
[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 (10,900 units at $225 each)
Variable costs (10,900 units at $180 each)
Contribution margin
Fixed costs
Income
1. Dollar sales for target income
2. Margin of safety
$ 2,452,500
1,962,000
490,500
387,000
$ 103,500
Exercise 5-12 (Algo) Target income and margin of safety LO C2
1. Assume Hudson has a target income of $159,000. 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)?
Note: Round your answer to 1 decimal place.
%
"
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