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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 2019. HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,500 units at $225 each) Variable costs (10,500 units at $180 each) Contribution margin Fixed costs Pretax income $2,362,500 1,890,000 472,500 369,000 $ 103,500 Exercise 18-17 Target income and margin of safety (in dollars) LO C2 1. Assume Hudson Co. has a target pretax income of $171,000 for 2020. What amount of sales in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety % Exercise 18-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $116 and of each door is $266. The variable cost of a window is $70.50 and of a door is $183.00. Fixed costs are $371,000. (Enter your "per unit" values in two decimal places.) Selling Price per unit Total per composite unit (1) Determine the selling price per composite unit. Quantity Windows Doors (2) Determine the variable costs per composite unit. Quantity Windows Variable costs per unit Total per composite unit Doors Contribution margin per composite unit Contribution margin (3) Determine the break-even point in composite units. Choose Numerator: 1 Choose Denominator: Break Even Units Break even units 1 = (4) 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 Windows Doors Total
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