Question
Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (8,600 units
Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (8,600 units at $225 each) $ 1,935,000 Variable costs (8,600 units at $170 each) 1,462,000 Contribution margin $ 473,000 Fixed costs 304,000 Pretax income $ 169,000 If the company changes 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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