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 (10,000 units at $300 each) Variable costs (10,000 units at $240 each) Contribution margin Fixed costs Income $ 3,000,000 2,400,000 600,000 420,000 $ 100,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 (10,000 units at $300 each)
Variable costs (10,000 units at $240 each)
Contribution margin
Fixed costs
Income
$ 3,000,000
2,400,000
1. Dollar sales for target income
2. Margin of safety
600,000
420,000
$100,000
Exercise 21-12 (Algo) Target income and margin of safety LO C2
1. Assume Hudson has a target income of $166,000. 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.
Transcribed Image Text:1 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 (10,000 units at $300 each) Variable costs (10,000 units at $240 each) Contribution margin Fixed costs Income $ 3,000,000 2,400,000 1. Dollar sales for target income 2. Margin of safety 600,000 420,000 $100,000 Exercise 21-12 (Algo) Target income and margin of safety LO C2 1. Assume Hudson has a target income of $166,000. 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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