Use the following information for the Exercises below. (Algo)[The following information applies to the questions displayed below.]Hudson Company reports the following contribution margin income statement.HUDSON COMPANYContribution Margin Income StatementFor Year Ended December 31Sales (10,900 units at $225 each)Variable costs (10,900 units at $180 each)Contribution marginFixed costs$ 2,452,5001,962,000490,500387,000Income$ 103,500Exercise 18-12 (Algo) Target income and margin of safety LO C21. Assume Hudson has a target income of $159,000. What amount of sales (in dollars) is needed to produce this targetincome?2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)1. Amount of sales2. Margin of safety%

Introduction: A contribution margin income statement is an income statement in which all variable…

1. Assume Hudson has a target income of $159,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)

1. Assume Hudson has a target income of $159,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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