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Required information [The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019 HUDSON CO. Contribution Margin

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Required information [The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,300 units at $175 each) Variable costs (11,300 units at $140 each) Contribution margin Fixed costs Pretax income $1,977,500 1,582,000 395,500 315,000 $ 80,500 If the company raises its selling price to $200 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. $ 35 per unit 2. 20% Contribution margin Contribution margin ratio Break-even point Break-even sales dollars 3 9,000 units $ 1,575,000 14 B

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