Hudson Co. reports the contribution margin income statement for 2017 below. Using this information, compute Hudson Co.'s
Question:
HUDSON CO.
contribution margin Income Statement
For Year Ended December 31, 2017
Sales (9,600 units at $225 each).................................$2,160,000
Variable costs (9,600 units at $180 each) .......................1,728,000
contribution margin..................................................432,000
Fixed costs............................................................324,000
Pretax income......................................................$ 108,000
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamental Accounting Principles
ISBN: 978-1259536359
23rd edition
Authors: John Wild, Ken Shaw, Barbara Chiappett
Question Posted: