Question
Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,500 units
Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,500 units at $225 each) $ 2,137,500 Variable costs (9,500 units at $150 each) 1,425,000 Contribution margin $ 712,500 Fixed costs 480,000 Pretax income $ 232,500 If the company raises its selling price to $250 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.
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