Question: #11 Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,900
#11
| Hudson Co. reports the contribution margin income statement for 2015. |
| HUDSON CO. | |||
| Contribution Margin Income Statement | |||
| For Year Ended December 31, 2015 | |||
| Sales (9,900 units at $225 each) | $ | 2,227,500 | |
| Variable costs (9,900 units at $185 each) | 1,831,500 | ||
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| Contribution margin | $ | 396,000 | |
| Fixed costs | 260,000 | ||
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| Pretax income | $ | 136,000 | |
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| If the company raises its selling price to $250 per unit. |
| 1. | Compute Hudson Co.'s contribution margin per unit. |
| 2. | Compute Hudson Co.'s contribution margin ratio. |
| 3. | Compute Hudson Co.'s break-even point in units. |
| 4. | Compute Hudson Co.'s break-even point in sales dollars. |
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