Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4 Required information Part 2 of 2 [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement.

image text in transcribed
4 Required information Part 2 of 2 [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. 3 points HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,300 units at $375 each) $ 3, 862,500 Variable costs (10,300 units at $300 each) 3, 090, 000 eBook Contribution margin 772,500 Fixed costs 600, 000 Income $ 172,500 Hint 1. Assume Hudson has a target income of $169,000. What amount of sales (in dollars) is needed to produce this target income? Print 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 References 2. Margin of safety %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 2

Authors: Thomas Beechy, Joan Conrod, Elizabeth Farrell, Ingrid McLeod-Dick

6th Edition

1259105482, 9780071338820

More Books

Students also viewed these Accounting questions

Question

Explain the typical grievance process.

Answered: 1 week ago

Question

3. Avoid making mistakes when reaching our goals

Answered: 1 week ago