Question
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin
Required information
Use the following information for the Exercises below.
[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 (10,200 units at $225 each) | $ | 2,295,000 | |
| Variable costs (10,200 units at $180 each) | 1,836,000 | ||
| Contribution margin | $ | 459,000 | |
| Fixed costs | 360,000 | ||
| Pretax income | $ | 99,000 | |
Exercise 18-19 Evaluating strategies LO C2
If the company raises its selling price to $240 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.
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Knowledge Based System For Information System Audit
Authors: Amol B. Devale, R. V. Kulkarni
1st Edition
6200652376, 978-6200652379
