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Require nformation The followng information applies to the questions displayed below Hudson Co. re ports the contribution margin income statement for 2017 Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,300 units at $375 each) Variable costs (10,300 units at $300 each) Contribution margin Fixed costs Pretax income 3,862,500 3,090,000 $ 772,500 600,000 $ 172,500 1. Compute Hudson Co's break-even point in units and 2. Compute Hudson Co's break-even point in sales dollars. 1 Break-even point 2. 8,000 units Break-even point s 3,000,000 Prev 16 MacBook Required information The following information applies to the questions displayed below Hudson Co. reports the contribution margin income statement for 2017 HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,300 units at $375 each) Variable costs (10,300 units at $300 each) Contribution margin Pixed costs $3,862,500 3,090,000 $ 772,500 600,000 172,500 Pretax income 1. Assume Hudson Co. has a target pretax income of $169.000 for 2018. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2018, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales 3,845,000 2. Margin of safety HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,300 units at $375 each) Variable costs (10,300 units at $300 each) Contribution margin Fixed costs Pretax income $3,862,500 3,090,000 $ 772,500 600,000 $172,500 Assume the company is considering investing in a new machine that will increase its fixed costs by $44,000 per year and decrease its variable costs by $1 assuming the company purchases this machine. 0 per unit. Prepare a forecasted contribution margin income statement for 2018 HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fixed costs Income (pretax) Should the company purchase the machine? 3,862,500 3,090,000 772.500 600.000 172.500 No Next > K Prev 5 6 7 of 16 HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,300 units at $375 each) Variable costs (10,300 units at $300 each) Contribution margin Fixed costs Pretax income $3, 862,500 3,090,000 $ 772,500 600,000 S 172,500 If the company raises its selling price to $400 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 per unit 1 Contribution margin 2. Contribution margin ratio 3. Break-even point 4. Break-even sales dollars units HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,300 units at $375 each) Variable costs (10,300 units at $300 each) Contribution margin Fixed costs Pretax income $3,862,500 3,090,000 772,500 600,000 172,500 The marketing manager believes that increasing advertising costs by $165,000 in 2018 will increase sales volume to 11,700 units. Prepare a forecasted contribution margin income statement for 2018 ass company incurs the additional advertising costs. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fixed costs Income (pretax) Should the company incur the additional advertising costs? US-Mobile manufactures and sells two products, tablet computers andsmartphones, in the ratio of 4 $85,100, and the contribution margin per composite unit is $115. What number of each type of break-even point? Determine the break-even point in composite units Choose Numerator: Choose Denominator: Break even units Fixed costs per unit Contribution margin per unit Break even units 85.100 115.00 740 composite units Determine the number of units of each product that will be sold at the break-even point. Quantity Number of composite units to break even Unit sales at break-even point Tablet computers Smartphones Total units
