Question
Required information Use the following information for the Exercises below. (Algo) Skip to question [The following information applies to the questions displayed below.] Hudson Company
Required information
Use the following information for the Exercises below. (Algo)
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[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 (10,900 units at $225 each) | $ 2,452,500 |
---|---|
Variable costs (10,900 units at $180 each) | 1,962,000 |
Contribution margin | 490,500 |
Fixed costs | 387,000 |
Income | $ 103,500 |
Exercise 18-12 (Algo) Target income and margin of safety LO C2
1. Assume Hudson has a target income of $159,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)
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