Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,200 units at $225 each) Variable costs (10,200 units at $180 each) Contribution margin Fixed costs Pretax income $2,295,000 1,836,000 459,000 360,000 $ 99,000 Exercise 05-16 Break-even LO P2 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars. 1. units Break-even point Break-even point 2. Exercise 05-17 Target income and margin of safety (in dollars) LO C2 1. Assume Hudson Co. has a target pretax income of $168,000 for 2020. What amount of sales (in dollars) is needed to produce this target Income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place) 1. Amount of sales 2 Margin of safety Exercise 05-18 Evaluating strategies LO C2 Assume the company is considering investing in a new machine that will increase its fixed costs by $43,500 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine. HUDSON CO. Forecasted Contribution Margin income Statement For Your Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/.06.11 Should the company purchase the machine? f 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. per unit % Contribution margin Contribution margin ratio Break-even point Break-even sales dollars 3. units 4