Refer to the information in Exercise 21 16 If the company raises its selling price to $240 per unit, compute its HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9,600 units at $225 each) $2,160,000 Variable costs (9,600 units at $180 each) 1,728,000 Contributi...

1 Revised contribution margin per unit 240 180 60 2 Revis ...

Refer to the information in Exercise 21-16. If the company raises its selling price to $240 per

Question:

Refer to the information in Exercise 21-16. If the company raises its selling price to $240 per unit, compute its
HUDSON CO.
Income Statement
For Year Ended December 31, 2017
Sales (9,600 units at $225 each).................................$2,160,000
Variable costs (9,600 units at $180 each) .......................1,728,000
..................................................432,000
Fixed costs............................................................324,000
Pretax income......................................................$ 108,000
(1) per unit,
(2) ratio,
(3) Break-even point in units, and
(4) Break-even point in sales dollars.
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...