Question: Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,400 units
Hudson Co. reports the contribution margin income statement for 2015.
HUDSON CO.
Contribution Margin Income Statement For Year Ended December 31, 2015
Sales (9,400 units at $225 each) $ 2,115,000
Variable costs (9,400 units at $165 each) 1,551,000
Contribution margin $ 564,000
Fixed costs 405,000
Pretax income $ 159,000
If the company raises its selling price to $300 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.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
