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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
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 2017.
HUDSON CO. | |||
Contribution Margin Income Statement | |||
For Year Ended December 31, 2017 | |||
Sales (10,500 units at $225 each) | $ | 2,362,500 | |
Variable costs (10,500 units at $180 each) | 1,890,000 | ||
Contribution margin | $ | 472,500 | |
Fixed costs | 369,000 | ||
Pretax income | $ | 103,500 | |
Exercise 18-19 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 2. Contribution margin Contribution margin ratio Break-even point Break-even sales dollars 3. Bra units 4Step by Step Solution
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