Question: Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (10,500 units


Hudson Co. reports the contribution margin income statement for 2015. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (10,500 units at $225 each) Variable costs (10,500 units at $165 each) $ 2,362,500 1,732,500 Contribution margin Fixed costs $ 630,000 253,000 Pretax income $ 377,000 If the company raises its selling price to $220 per unit. 1. Compute Hudson Co.'s contribution margin per unit. Contribution margin $ 55 per unit 2. Compute Hudson Co.'s contribution margin ratio. Contribution margin ratio 27% 3. Compute Hudson Co.'s break-even point in units. Break-even point 4,217 units 4. Compute Hudson Co.'s break-even point in sales dollars. Break-even sales dollars $ 948,631
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
