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

Contribution margin $ 396,000
Fixed costs 260,000

Pretax income $ 136,000

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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