! 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. Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 1. Amount of sales 2. Margin of safety Exercise 18-12 (Algo) Target income and margin of safety LO C2 1. Assume Hudson has a target income of $165,000. 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.) $ 2,227,500 1,782,000 445,500 342,000 $ 103,500 %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business 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.
Sales (9,900 units at $225 each)
Variable costs (9,900 units at $180 each)
Contribution margin
Fixed costs
Income
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
1. Amount of sales
2. Margin of safety
Exercise 18-12 (Algo) Target income and margin of safety LO C2
1. Assume Hudson has a target income of $165,000. 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.)
$ 2,227,500
1,782,000
445,500
342,000
$ 103,500
%
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. Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 1. Amount of sales 2. Margin of safety Exercise 18-12 (Algo) Target income and margin of safety LO C2 1. Assume Hudson has a target income of $165,000. 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.) $ 2,227,500 1,782,000 445,500 342,000 $ 103,500 %
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