Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,800 units at $375 each) Variable costs (10,800 units at $300 each) Contribution margin $ 4,050,000 3,240,000 $ 810,000 660,000 $ 150,000 Fixed costs Income 1. Compute the company's degree of operating leverage. 2 If sales decrease by 5% in the next year, what will be the company's income? 3. Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin (3,240,000) 660,000 (3.900,000) Fixed costs Income < Required 2 Required Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,800 units at $375 each) Variable costs (10,800 units at $300 each) Contribution margin $ 4,050,000 3,240,000 $ 810,000 660,000 $ 150,000 Fixed costs Income 1. Compute the company's degree of operating leverage. 2 If sales decrease by 5% in the next year, what will be the company's income? 3. Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin (3,240,000) 660,000 (3.900,000) Fixed costs Income < Required 2 Required
Expert Answer:
Answer rating: 100% (QA)
A B C 1 Degree of operating leverage 1 Contribution marginPretax income 540 times 2 3 ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Hudson Co. reports the following contribution margin income statement. Compute (1) Break-even point in units and (2) Break-even point in sales dollars. Contributlon Margin Income Statement For Year...
-
prepare two contribution margin income statement : one at the $253,000 sales level and one at the $368,000 sales level Worldwides relevant range is between wes of $250,000 and $368,000 Requirement...
-
At December 31, GreenTea Company reports the following results for its calendar-year. Cash sales . . . . . . . . . . . . $1,200,000 Credit sales . . . . . . . . . . . . . 900,000 Its year-end...
-
On 28 April 2020, Mr Guna, CEO of Econ Engineering Malaysia, proposed to complete an abandoned boiler project that no one had dared to revive. He knew that the project was 60% complete before it was...
-
Ryan Manufacturing must budget a particular direct material very carefully because of its scarcity and its cost. One unit of this material is used to produce one unit of finished product, and all...
-
Verify that the standard half-cell potentials reported in Table 9.1 for the reactions between cupric, cuprous, and solid copper and Cu+e Cut, Cu+ + 2 e Cu,
-
What is the answer if you add the ball pass frequencies of the inner and outer races?
-
The Shotz Beer Company has breweries in two cities; the breweries can supply the following numbers of barrels of draft beer to the companys distributors each month: Brewery .... Monthly Supply (bbl)...
-
3. (50 points) You are given a function f(x) = sin(x) + cos(x) on the interval [-3,1] and you want to calculate the first derivative of this function at the points on this interval. Write a MATLAB...
-
In problem 8.16, a college chemistry instructor thinks the use of embedded tutors will improve the success rate in introductory chemistry courses. The instructor carried out a hypothesis test and...
-
Discuss several different types of media that could and would be beneficial to law enforcement and why you think so. Discuss the complexity of policemedia relations, especially as this relates to...
-
The measurement is made as a deviation from the target, thus the requirements are 0 /- 2 units. The current process averages 0 with a standard deviation of 1. Units less than -2.0 are scrapped at a...
-
Do women talk significantly more than men? In a study designed to measure this, random samples of men and women were observed throughout a typical day. The sample of 27 women was found to have a mean...
-
Financial Planning al Biriktir just graduated with a B . S . degree in engineering and landed a new job with a starting annual gross salary of $A . There are a number of things that he would like to...
-
Mr. Tamada, a Japanese Officer for the Toyo Toys Production, is asking for a certain budget list. due to old age, he cannot remember what kind of budget he is asking from the Finance Department. You...
-
What are some ways in which earnings management on construction contracts can be minimized?
-
1.On the basis of what you know about global cultures, would people from Canada, India or Brazil be more comfortable with a group or team-based approach to work.(with references) 2.In discussing...
-
Extend Algorithms 3.4 and 3.5 to include as output the first and second derivatives of the spline at the nodes.
-
On January 1, $30,000 cash is borrowed from a bank in return for a 12% installment note with 36 monthly payments of $996 each. (1) Prepare an amortization table for the first three months of this...
-
For journal entries 1 through 6, identify the explanation that most closely describes it. A. To record this periods depreciation expense. B. To record accrued salaries expense. C. To record this...
-
Refer to the chapter opener regarding Mark Wallace and his company, Wallace Detroit Guitars. All successful businesses track their costs, and it is especially important for start-up businesses to...
-
Speeds of bullet trains. Determine whether the data are qualitative or quantitative. Explain your reasoning.
-
Widths of veins in different species of leaves. Determine whether the data are qualitative or quantitative. Explain your reasoning.
-
American Standard Code for Information Interchange (ASCII) codes. Determine whether the data are qualitative or quantitative. Explain your reasoning.
Study smarter with the SolutionInn App