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 $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Incone $ 2,452,500 1,962,000 490,500 357,000 $ 105,500 Exercise 21-12 (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 (10,000 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Incone $ 2,452,500 1,962,000 490,500 357,000 $ 105,500 Exercise 21-12 (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
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Please do not give solution in image format thanku
![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 $225 each)
Variable costs (10,900 units at $180 each)
Contribution margin
Fixed costs
Incone
$ 2,452,500
1,962,000
490,500
357,000
$ 105,500
Exercise 21-12 (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%2F31f69673-e169-4906-bacc-8fbb6c398d4b%2Fa4796765-0db2-4499-8680-3b996ec96662%2Fagz73ma_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 (10,000 units at $225 each)
Variable costs (10,900 units at $180 each)
Contribution margin
Fixed costs
Incone
$ 2,452,500
1,962,000
490,500
357,000
$ 105,500
Exercise 21-12 (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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