Question: Refer to the information in Exercise In Exercise HUDSON CO Contribution

Refer to the information in Exercise.
In Exercise
HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2015
Sales (9,600 units at $225 each) . . . . . . . . . . . . . . . . $2,160,000
Variable costs (9,600 units at $180 each) . . . . . . . . . 1,728,000
Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . $ 432,000
Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,000
Pretax income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108,000
If the company raises its selling price to $240 per unit, compute its
(1) Contribution margin per unit,
(2) Contribution margin ratio,
(3) Break-even point in units, and
(4) Break-even point in sales dollars.

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  • CreatedApril 23, 2015
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