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Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,400 units
Hudson Co. reports the contribution margin income statement for 2019.
| HUDSON CO. | |||
| Contribution Margin Income Statement | |||
| For Year Ended December 31, 2019 | |||
| Sales (10,400 units at $280 each) | $ | 2,912,000 | |
| Variable costs (10,400 units at $210 each) | 2,184,000 | ||
| Contribution margin | 728,000 | ||
| Fixed costs | 567,000 | ||
| Pretax income | $ | 161,000 | |
1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars.
3. Assume Hudson Co. has a target pretax income of $170,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 4. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)
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