Question: Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,000 units
Hudson Co. reports the contribution margin income statement for 2019.
| HUDSON CO. | |||
| Contribution Margin Income Statement | |||
| For Year Ended December 31, 2019 | |||
| Sales (11,000 units at $300 each) | $ | 3,300,000 | |
| Variable costs (11,000 units at $240 each) | 2,640,000 | ||
| Contribution margin | 660,000 | ||
| Fixed costs | 360,000 | ||
| Pretax income | $ | 300,000 | |
1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars.
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