Hudson Lighting sells high end light fixtures. The company reported the following contribution margin income statement for $2022.$

Hudson Lighting

Contribution Income Statement

For Year Ended December $31,2022$

Sales $(9,600$ units at $$380$ each$)$ $$3,648,000$

Variable costs $(9,600$ units at $$133$ each$)1,276,800$

Contribution margin $2,371,200$

Fixed costs $728,650$

Net operating income $$1,642,550$

$1)$ Compute the company$$s CM ratio and variable expense ratio.

$2)$ Compute the company$$s break$-$even point in both units $($fixtures$)$ and sales dollars.

 

Answer rating: 100% (QA)

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