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Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,000 units
Hudson Co. reports the contribution margin income statement for 2017.
HUDSON CO. | |||
Contribution Margin Income Statement | |||
For Year Ended December 31, 2017 | |||
Sales (10,000 units at $300 each) | $ | 3,000,000 | |
Variable costs (10,000 units at $240 each) | 2,400,000 | ||
Contribution margin | $ | 600,000 | |
Fixed costs | 420,000 | ||
Pretax income | $ | 180,000 | |
If the company raises its selling price to $320 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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