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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
[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 (9,700 units at $280 each) | $ 2,716,000 |
---|---|
Variable costs (9,700 units at $210 each) | 2,037,000 |
Contribution margin | 679,000 |
Fixed costs | 441,000 |
Income | $ 238,000 |
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.
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