Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 each) Contribution margin Fixed costs Income $3,210,000 2,568,000 642,000 504,000 $ 138,000 1. Assume Hudson has a target income of $161,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,700 units at $300 each) Variable costs (10,700 units at $240 each) Contribution margin Fixed costs Income $3,210,000 2,568,000 642,000 504,000 $ 138,000 1. Assume Hudson has a target income of $161,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place.
Expert Answer:
Answer rating: 100% (QA)
1 To calculate the sales needed to produce the target income we can use the following formula Target ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
An organization has three plants at X, Y, Z which supply to warehouses located at A, B, C, D, and E respectively. The capacity of the plants is 800, 500 and 900 per month and the requirement of the...
-
< < and >> are left shift and right shift operator in C. Assuming a is a 32 bits integer, and given the following code snippet: int i = 520; a = a < < 2; a = a >> 3; What are the results of a in each...
-
in python language 2. Section #Prog Question 1 How to Attempt? Halindrome Given a string S, divide it into two equal parts S1 and S2. S is called a halindrome if at least any one of the following...
-
Determine the reactions at the beam supports for the given loading when wO = 400 lb/ft. 300 lb/ft A. 5 ft
-
The Freedom Clothes Company produced 18,000 units during June of the current year. The Cutting Department used 3,500 direct labor hours at an actual rate of $12.10 per hour. The Sewing Department...
-
Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold Sale price each Total labor hours...
-
How does an auditor test the valuation of investment securities?
-
Consider the following account balances (in thousands) for the Peterson Company: Required 1. Prepare a schedule for the cost of goods manufactured for 2014. 2. Revenues for 2014 were $ 310 million....
-
How do gender dynamics influence conflict resolution processes, and what steps can be taken to ensure gender equity and representation in conflict resolution scenarios?
-
V. N. Murti and V. K. Sastri investigated the production characteristics of various Indian industries, including cotton and sugar. They specified CobbDouglas production functions for output (Q) as a...
-
Carol charged her credit card 10,000 dollars on December 31, 2011. The monthly interest rate charged by the credit card company is 1% of the unpaid balance at the end of each month. Carol wishes to...
-
When can an omission qualify as the actus reus of a crime?
-
When is the defense of consent not available?
-
Massachusetts is one of ten States that prohibit distribution of hypodermic needles without a prescription. In the face of those statutes the defendants operated a needle exchange program in an...
-
Explain how conspiracy differs from complicity.
-
The State of Florida has brought this petition for issuance of a writ of certiorari seeking to quash an order of the trial court determining that the respondent/defendant, Alexander James, is...
-
A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $116 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of...
-
Teasdale Inc. manufactures and sells commercial and residential security equipment. The comparative unclassified balance sheets for December 31, 2015 and 2014 are provided below. Selected missing...
-
At December 31, the end of Chilton Communications third quarter, the following stockholders equity accounts are reported. In the fourth quarter, the following entries related to its equity are...
-
Determine the missing amount for each separate situation involving work in process cost flows. (1) (2) (3) Total manufacturing costs 2$ ? $150,000 $217,000 Work in process inventory, beginning...
-
Refer to the information from Exercise 23-27. Compute the following. 1. Variable overhead spending and efficiency variances. 2. Fixed overhead spending and volume variances. 3. Controllable variance....
-
Calculate the mean effect size estimate and its confidence limits for the data in this table. Bloch et al. (2009) conducted a meta-analysis on the treatment of Attention-deficit/hyperactivity...
-
For the Bloch et al. study what would you conclude about the risk of increasing tic behavior using methylphenidate? Bloch et al. (2009) conducted a meta-analysis on the treatment of...
-
Create a forest plot for the data in Blochs study. Bloch et al. (2009) conducted a meta-analysis on the treatment of Attention-deficit/hyperactivity disorder. There have been reports that...
Study smarter with the SolutionInn App