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1 2 3 4 Hudson Company reports the following contribution margin income statement HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 $
1 2 3 4 Hudson Company reports the following contribution margin income statement HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 $ Sales (11,400 units at $225 each) 2,565,000 Variable costs (11,400 units at $180 each) 2,052,000 Contribution margin 513,000 Fixed costs 360,000 Income $ 153,000 If the company raises its selling price to $240 per unit. 1. Compute Hudson Company's contribution margin per unit. 2. Compute Hudson Company's contribution margin ratio. 3. Compute Hudson Company's break-even point in units. 4. Compute Hudson Company's break-even point in sales dollars. per unit % 1. Contribution margin 2. Contribution margin ratio 3. Break-even point 4. Break-even sales dollars units Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 $ Sales (11,400 units at $225 each) 2,565,000 Variable costs (11,400 units at 2,052,000 $180 each) Contribution margin 513,000 Fixed costs 360,000 Income $ 153,000 The company is considering buying a new machine that will increase its fixed costs by $36,500 per year and decrease its variable costs by $9 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income/Loss $ 0 0 Sunn Company manufactures a single product that sells for $310 per unit and whose variable costs are $248 per unit. The company's annual fixed costs are $992,000. (1) Prepare a contribution margin income statement at the break-even point. (2) If the company's fixed costs increase by $145,000, what amount of sales (in dollars) is needed to break even? Complete this question by entering your answers in the tabs below. Required: Required 2 If the company's fixed costs Increase by $145,000, what amount of sales (in dollars) is needed to break even? 1 Numerator Total fixed costs Break-Even Point in Dollars Denominator Contribution margin ratio Break-Even Point in Dollars Break-even point in dollars
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