Hudson Co. reports the contribution margin income statement for 2019. (use this for entire exercise 18)

HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2019
Sales (11,100 units at $375 each)	$	4,162,500
Variable costs (11,100 units at $300 each)		3,330,000
Contribution margin		832,500
Fixed costs		660,000
Pretax income	$	172,500

Exercise 18-16 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. Assume Hudson Co. has a target pretax income of $156,000 for 2020. What amount of sales (in dollars) is needed to produce this target income?Exercise 18-17 Target income and margin of safety (in dollars) LO C2

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.)

Assume the company is considering investing in a new machine that will increase its fixed costs by $38,000 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.Exercise 18-18 Evaluating strategies LO C2

If the company raises its selling price to $400 per unit.Exercise 18-19 Evaluating strategies LO C2

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.

Exercise 18-20 Evaluating strategies LO C2

The marketing manager believes that increasing advertising costs by $189,000 in 2020 will increase the companys sales volume to 12,500 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs.