[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 (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Income $ 2,160,000 1,728,000 432,000 324,000 $ 108,000 Exercise 5-18 (Static) Evaluating strategies-price increase LO C2 If the company raises its selling price to $240 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. per unit % 1. Contribution gin 2. Contribution margin ratio 3. Break-even point 4 Break-even sales dollars units Exercise 5-22 (Static) CVP analysis with two products LO P3 Handy Home sells windows (80% of sales) and doors (20% of sales). The selling price of each window is $200 and of each door is $500. The variable cost of each window is $125 and of each door is $350 Fixed costs are $720,000, (1) Computo the weighted average contribution margin. Sales mix Contribution margin Total per unit Windows Doors Weighted average contribution margin (2) Compute the break even point in units using the weighted average contribution margin. Numerator: 1 Denominator: Break Even Units Break Even Units 0 (3) Compute the number of units of each product that will be sold at the break even point. Sales mix Number of units to break even Unit sales at break-even point Windows Door Total ! Required information Problem 5-1A (Static) Measuring costs using high-low method LO P1 The following information applies to the questions displayed below) Alden Company's monthly data for the past year follow Management wants to use these data to predict future variable and fixed costs Month Month Units Sold 1 320.000 2 160.000 280,000 200,000 5 300,000 6 200,000 Total cost $ 160,000 100.000 220,000 100.000 230,000 120,000 9 10 11 12 Units Sola 340,000 280,000 80,000 160,000 100.000 110.000 Total Cost $220.000 160.000 64,000 140,000 100,000 80,000 Problem 5-1A (Static) Part 2 2. Predict future total costs when sales volume is (a) 220.000 units and (b) 240.000 units. Predictions (a) (b) 220.000 240.000 Units 0 $ 0 Total