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.

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