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2 questions. 2nd one has two parts A manufacturer's contribution margin income statement for the year follows. Prepare a contribution margin income statement if the
2 questions. 2nd one has two parts
A manufacturer's contribution margin income statement for the year follows. Prepare a contribution margin income statement if the number of units sold (a) increases by 200 units and (b) decreases by 200 units. Sales ($13 per unit * 10,500 units) Variable costs Contribution margin Fixed costa Income $136,500 73,500 63,000 52,000 $ 11,000 Contribution Margin Income Statement For Year Ended December 31 10.700 units sold 10,300 units sold Sales Variable costs Contribution margin 0 0 Fixed costs Income $ 0 $ 0 Required information [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 (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Income $ 2,227,500 1,782,000 445,500 342,000 $ 103,500 1. Compute break-even point in units. 2. Compute break-even point in sales dollars. units 1. Break-even units 2. Break-even sales dollars of 2 Required information [The following information applies to the questions displayed below.) Hudson Company reports the following contribution margin income statement ok HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Income $ 2,227,500 1.782,000 445,500 342,000 $ 103,500 ences 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.) 1. Amount of sales 2. Margin of safety Step by Step Solution
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