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Required information Use the following information for the Exercises below. (Algo) [The following information applies to the questions displayed below.] Hudson Company reports the following
Required information Use the following information for the Exercises below. (Algo) [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 (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Income $ 3,024,000 2,268,000 756,000 567,000 $ 189,000 Exercise 5-18 (Algo) Evaluating strategies-price increase LO C2 If the company raises its selling price to $300 per unit. 1. Compute Hudson Company's contribution margin per unit. 2. Compute Hudson Company's contribution margin ratio. 3. Compute Hudson Company's break-even point in units. 4. Compute Hudson Company'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 Required information Use the following information for the Exercises below. (Algo) [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 (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Income $ 3,024,000 2,268,000 756,000 567,000 $ 189,000 Exercise 5-19 (Algo) Evaluating strategies-new machine LO C2 The company is considering buying a new machine that will increase its fixed costs by $39,500 per year and decrease its variable costs by $9 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. Sales HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Variable costs Contribution margin Fixed costs Income/Loss 0 $ 0
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