Hudson Co. reports contribution margin income statement for 2017. Hudson company Contribution margin income statement For the
Fantastic news! We've Found the answer you've been seeking!
Question:
Hudson Co. reports contribution margin income statement for 2017.
Hudson company | |||
Contribution margin income statement | |||
For the year ended December 31, 2017 | |||
Sales (10,500 units at $225 each) | ps | 2,362,500 | |
Variable costs (10,500 units at $180 each) | 1,890,000 | ||
Contribution margin | ps | 472,500 | |
Fixed costs | 369,000 | ||
income before taxes | ps | 103,500 | |
1. Calculate Hudson Co.'s breakeven point in units.
2. Calculate Hudson Co.'s breakeven point in sales dollars.
3. Assume that Hudson Co. has a target pre-tax revenue of $171,000 for 2018. How much sales (in dollars) is needed to produce this target revenue?
4. If Hudson achieves its 2018 pre-tax income target, what is its margin of safety (in percent)?
Related Book For
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta
Posted Date: