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HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each)
HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Pretax income $2,227,500 1,782,000 $ 445,500 342,000 $ 103,500 If the company raises its selling price to $240 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. 2. 3. Contribution margin Contribution margin ratio Break-even point Break-even sales dollars per unit % units 4
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