HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9.700 units at $280 each) Variable costs (9.700 units at $210 each) Contribution margin Fixed costs Pretax income $ 2.716.000 2,037,000 $ 679,000 441,000 $ 238,000 2. Award: 2.00 points 1. Assume Hudson Co. has a target pretax income of $163.000 for 2018. What amount of sales in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2018, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9,700 units at $280 each) Variable costs (9.700 units at $210 each) Contribution margin Fixed costs Pretax income $ 2.716.000 2,037,000 $ 679,000 441,000 $ 238,000 3. Award: 2.00 points 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 2018 assuming the company purchases this machine. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9.700 units at $280 each Variable costs (9.700 units at $210 each) Contribution margin Fixed costs Pretax income $ 2.716,000 2,037,000 $ 679,000 441,000 $ 238,000 4. Award: 2.00 points If the company raises 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. per unit 1. 2 3. 4. Contribution margin Contribution margin ratio Break-even point Break-even sales dollars units Handy Home sells windows and doors in the ratio of 73 (Windows doors). The selling price of each window is $117 and of each door is $267. The variable cost of a window is $71.00 and of a door is $183.50. Fixed costs are $372, 125. (Enter your "per unit" values in two decimal places.) Total per composite unit (1) Determine the selling price per composite unit. Quantity Selling Price per unit Windows Doors Total per composite unit (2) Determine the variable costs per composite unit. Quantity Variable costs per unit Windows Doors Contribution margin per composite unit 0.00 0.00 Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: Choose Denominator Break Even Units Break even units - (4) Determine the number of units of each product that will be sold at the break-even point Quantity Number of composite units to Unit sales at break-even point break even Windows Doors