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Required Information The following information applies to the questions displayed belowj Hudson Co. reports the contribution margin Income statement for 2017. HUDSON CO Contribution Margin
Required Information The following information applies to the questions displayed belowj Hudson Co. reports the contribution margin Income statement for 2017. HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (11,100 units at $375 each) Variable costs (11,100 units at $300 each) Contribution margin Fixed costs Pretax income $4,162,500 3,330,000 S B32,500 660,000 $ 172,500 Assume the company is considering investing in a new machine that will increase its fixed costs by $38,000 per year and decrease its varlable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine ON 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? Required Informatlon 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 (11,100 units at $375 each) Variable costs (11,100 units at $300 each) Contribution margin $4,162,500 $ B32,500 660,000 $ 172,500 Fixed costs Pretax income 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 unlts. 4. Compute Hudson Co.'s break-even point in sales dollars. 1. Contribution margin 2. Contribution margin ratio 3. Break-even point 4. Break-even sales dollars per unit units Nombre Company management predicts $1,392,000 of varlable costs, $1,861,000 of fixed costs, and a pretax income of $227,000 in the next period. Management also predicts that the contribution margin per unit will be $36. (1) Compute the total expected dollar sales for next period Contribution margin Pretax income (2) Compute the number of units expected to be sold next period. Choose Numerator: Choose Denominator: Units Units
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