Blanchard Company manufactures a single product that sells for $215 per unit and whose total variable costs are $172 per unit. The company's annual fixed costs are $597,700. Answer is complete and correct. (a) Compute the company's contribution margin per unit. Sales per unit 215 per unit Less: Variable cost per unit 172 per unit Contribution margin 43 per unit (b) Compute the company's contribution margin ratio. Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin per unit Selling price per unit Contribution margin ratio 43 215 20.0% (c) Compute the company's break-even point in units. Choose Numerator: Choose Denominator: Break-Even Units Fixed costs Contribution margin per unit Break-even units 597,700 13.900 units (d) Compute the company's break-even point in dollars of sales. Choose Numerator: Choose Denominator: Break-Even Dollars Fixed costs Contribution margin ratio Break-even dollars IS 597,700 IS 2.988,500 1 20% . Required Information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin Income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,700 units at $280 each) Variable costs (9,780 units at $210 each) Contribution margin Fixed costs Pretax income $2,716,080 2,037, eee 679, eee 441,eee $ 238, eee 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars. Answer is complete and correct. 1. 6,300 units Break-even point Break-even point 2 $ 1,764,000 Required Information [The following Information applies to the questions displayed below.) Hudson Co. reports the contribution margin Income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,700 units at $280 each) Variable costs (9,780 units at $219 each) Contribution margin Fixed costs Pretax income $2,716,080 2,037,000 679, eee 441,280 $ 238,080 1. Assume Hudson Co. has a target pretax Income of $163,000 for 2020. What amount of sales (in dollars) is needed to produce this target Income? 2. If Hudson achieves its target pretax Income for 2020, what is its margin of safety (In percent)? (Round your answer to 1 decimal place.) Answer is complete but not entirely correct. 1. Amount of sales Margin of safety $ 2,416,000 12.0 X 96 2. Required Information [The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin Income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,700 units at $280 each) $2,716,080 Variable costs (9,788 units at $21e each) 2,037,080 Contribution margin 679, eee Fixed costs 441, eee Pretax income 238, eee $ Assume the company is considering Investing in a new machine that will increase its fixed costs by $41,000 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin Income statement for 2020 assuming the company purchases this machine HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 0 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine? S 0 Required Information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin Income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,700 units at $280 each) Variable costs (9,780 units at $219 each) Contribution margin Fixed costs Pretax income $2,716,080 2,037,000 679,00 441,80 $ 238, eee If the company ralses its selling price to $300 per unit. 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars. 1. per unit 96 2. Contribution margin Contribution margin ratio Break-even point Break-even sales dollars 3. units Required information (The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin Income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,788 units at $289 each) $2,716,00 Variable costs (9,789 units at $21e each) 2,037,000 Contribution margin 679,000 Fixed costs 441,eee Pretax income $ 238,00 The marketing manager believes that increasing advertising costs by $200.000 in 2020 will increase the company's sales volume to 11,100 units. Prepare a forecasted contribution margin Income statement for 2020 assuming the company Incurs the additional advertising costs. HUDSON CO Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax) Loss Should the company incur the additional advertising costs? 0 $ 0