Refer to the information in Exercise 21-11. 1. Assume Hudson has a target income of $162,000. What

Question:

Refer to the information in Exercise 21-11.

1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income?

2. If Hudson achieves its target income, what is its margin of safety (in percent)?

Data From Exercise 21-11

Hudson Co. reports the following contribution margin income statement. Compute

(1) Break-even point in units and

(2) Break-even point in sales dollars.

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Fundamental Accounting Principles

ISBN: 9781260247985

25th Edition

Authors: John J Wild, Ken Shaw

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Question Posted: Oct 28, 2021 03:02 AM

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Refer to the information in Exercise 21-11. 1. Assume Hudson has a target income of $162,000. What

Question:

Contributlon Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each).... Variable costs (9,600 units at $180 each)...... $2,160,000 1,728,000 Contribution margin .. 432,000 Fixed costs 324,000 Income.. $ 108,000

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Contribution margin ratio 4320002160000 20 1 ...View the full answer

Fundamental Accounting Principles

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