[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 (9,900 units at $225 each) Var able costs (9,900 units at $180 each) Consibution margin Fixed costs Pretax income $2,227,500 1,782,000 445,500 342,000 $ 103,500 Exercise 21-16 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. 1. units Break-even point Break-even point 2. Huuson Loreports uie coniuuon margin income statement of 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,990 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Pretax income $2,227,500 1,782,000 445,500 342,000 $ 103,500 Exercise 21-17 Target income and margin of safety (in dollars) LO C2 1. Assume Hudson Co. has a target pretax income of $165,000 for 2020. What amount of sales target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent place.) 1 Amount of sales 2. Margin of safety % 1 Homework 11 Contribution margin Fixed costs Pretax income 445,500 342,000 $ 103,500 B of 5 Exercise 21-18 Evaluating strategies LO C2 Assur - the company is considering investing in a new machine that will increase its variable costs by $9 per unit. Prepare a forecasted contribution margin income state this machine. ook lint sk HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 cences Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine? Prey 11 12 13 of 15 -work Variable costs (9,980 units at $180 each) Contribution margin Fixed costs Pretax income 1,782,000 445,500 342,000 $ 103,500 Exercise 21-19 Evaluating strategies LO C2 If the company raises its selling price to $240 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. 1. per unit % Contribution margin Contribution margin ratio Break-even point Break-even sales dollars units 4.