Question

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.


$1.99
Sales0
Views51
Comments0
  • CreatedApril 23, 2015
  • Files Included
Post your question
5000