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Why is this wrong? Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON
Why is this wrong?
Required information [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 (11,000 units at $300 each) Variable costs (11,000 units at $240 each) Contribution margin Fixed costs Income $ 3,300,000 2,640,000 660,000 360,000 $ 300,000 If the company raises its selling price to $320 per unit. If the company raises its selling price to $320 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. Answer is complete but not entirely correct. 1. Contribution margin 2. Contribution margin ratio 3. Break-even point 4. Break-even sales dollars per $ 660,000 unit 20 X % 8,000 units $ 2,400,000Step by Step Solution
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