Question: Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9,600 units

 Hudson Co. reports the contribution margin income statement for 2017. HUDSON

Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 cach) Contribution margin Fixed costs Pretax income S 2,160,000 1.728,000 S 432,000 324,000 108,000 1. Compute Hudson Co.'s break-even point in units and. 2. Compute Hudson Co.'s break-even point in sales dollars. 3.Assume Hudson Co. has a target pretax income of S162,000 for 2018 What amount of sales (in dollars) is needed to produce this target income? 4. If Hudson achieves its target pretax income for 2018, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 5.Assume the company is considering investing in a new machine that will increase its fixed costs by $40,500 per year and decrease its variable costs by S9 per unit. Prepare a forecasted contribution margin income statement for 2018 assuming the company purch company purchase the machine ases this machine. Should the If the company raises its selling price to $240 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. The marketing manager believes that increasing advertising costs by $81,000 in 2018 will increase the company's sales volume to 11,000 units. Prepare a forecasted contribution margin income statement for 2018 assuming the company incurs the additional advertising costs. Should the company incur the additional advertising costs

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