Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below] Hudson Company reports the following contribution margin income statement HUDSON COMPANY Contribution Margin

image text in transcribedimage text in transcribed

Required information [The following information applies to the questions displayed below] Hudson Company reports the following contribution margin income statement HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,200 units at $225 each) Variable costs (10,200 units at $180 each) Contribution margin Fixed costs Income $ 2,295,000 1,836,000 459,000 360,000 $ 99,000 1. Compute break-even point in units 2. Compute break-even point in sales dollars 1. Break-even units 2. Break-even sales dollars units Required information [The following information applies to the questions displayed below] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,200 units at $225 each) Variable costs (10,200 units at $180 each) Contribution margin Fixed costs Income $ 2,295,000 1,836,000 459,000 360,000 $ 99,000 1. Assume Hudson has a target income of $168,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

More Books

Students also viewed these Accounting questions

Question

1. Identify the three areas in which promotion exerts influence.

Answered: 1 week ago

Question

8-19. What role should job descriptions play in training at Apex?

Answered: 1 week ago