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 $ 2,452,500 1,962,000 490,500 387,000 $ 103,500 Fixed costs Income Exercise 18-11 (Algo) Computing break-even units and sales LO P2 1. Compute break-even point in units. 2. Compute break-even point in sales dollars.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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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
$ 2,452,500
1,962,000
490,500
387,000
Income
$ 103,500
Exercise 18-11 (Algo) Computing break-even units and sales LO P2
1. Compute break-even point in units.
2. Compute break-even point in sales dollars.
X Answer is complete but not entirely correct.
1. Break-even units
2,730,000 X units
2. Break-even sales
dollars
$
29
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 $ 2,452,500 1,962,000 490,500 387,000 Income $ 103,500 Exercise 18-11 (Algo) Computing break-even units and sales LO P2 1. Compute break-even point in units. 2. Compute break-even point in sales dollars. X Answer is complete but not entirely correct. 1. Break-even units 2,730,000 X units 2. Break-even sales dollars $ 29
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