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 (9,788 units at $289 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costs Pretax income $2,716,888 2,037,000 679,00 441,888 $ 238,888 Exercise 18-16 Break-even LO P2 1. Compute Hudson Co.'s break-even point in units. 2 Compute Hudson Co.'s break-even point in sales dollars. units 1. 2. Break-even point Break-even point 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 (9,788 units at $280 each) Variable costs (9,788 units at $210 each) Contribution margin Fixed costs Pretax income $2,716,000 2,037, cee 679,888 441,eee $ 238,888 Exercise 18-17 Target Income and margin of safety (In dollars) LO C2 1. Assume Hudson Co. has a target pretax Income of $163,000 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 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 (9,788 units at $289 each) Variable costs (9,700 units at $21e each) Contribution margin Fixed costs Pretax income $2,716,000 2,037,098 679,888 441,eee $ 238,000 Exercise 18-18 Evaluating strategies LO C2 Assume the company is considering Investing in a new machine that will increase its fixed costs by $41,000 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin Income statement for 2020 assuming the company purchases this machine HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine? 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 (9,788 units at $288 each) Variable costs (9,788 units at $210 each) Contribution margin Fixed costs Pretax income $2,716,698 2,037, cee 679,888 441,000 $ 238,888 Exercise 18-19 Evaluating strategies LO C2 If the company raises its selling price to $300 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. per unit 1. 2. Contribution margin Contribution margin ratio Break-even point Break-even sales dollars 3. units 4. 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 (9,788 units at $289 each) Variable costs (9,788 units at $210 each) Contribution margin Fixed costs Pretax income $2,716,888 2,037, eee 679,098 441,eee $ 238,888 Exercise 18-20 Evaluating strategies LO C2 The marketing manager believes that increasing advertising costs by $200,000 in 2020 will increase the company's sales volume to 11,100 units. Prepare a forecasted contribution margin Income statement for 2020 assuming the company Incurs the additional advertising costs. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company incur the additional advertising costs
