Break-even

Hudson Co. reports the contribution margin income statement for 2015 below. Using this information, compute Hudson Co,s (1) break-even point in units and (2) break-even point in sales dollars

Hudson Co.

Contribution Margin Income Statement

for Year Ended December 31, 2015

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