FINANCIAL ACCOUNTING
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Hudson Co. reports the contribution margin income statement for 2019.
HUDSON Co.
Contribution Margin Income Statement
For Year Ended December 31, 2019
Sales (10,600 units at $300 each)
Variable costs (10,600 units at $240 each)
Contribution margin
$3,180,000
2,544,000
636,000
Fixed costs
480,000
Pretax income
$
156,000
If the company raises its selling price to $320 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.
1.
Contribution margin
per unit
2.
Contribution margin ratio
3.
Break-even point
units
4.
Break-even sales dollars](https://content.bartleby.com/qna-images/question/f0e6a15e-8923-4b70-967c-767e9181f633/abf529e8-16ee-41f0-a132-4f578a5f1e82/uwrx9f_processed.jpeg)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Hudson Co. reports the contribution margin income statement for 2019.
HUDSON Co.
Contribution Margin Income Statement
For Year Ended December 31, 2019
Sales (10,600 units at $300 each)
Variable costs (10,600 units at $240 each)
Contribution margin
$3,180,000
2,544,000
636,000
Fixed costs
480,000
Pretax income
$
156,000
If the company raises its selling price to $320 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.
1.
Contribution margin
per unit
2.
Contribution margin ratio
3.
Break-even point
units
4.
Break-even sales dollars
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- Please provide answer in text (Without image)arrow_forwardVictoria Company reports the following operating results for the month of April. VICTORIA COMPANY CVP Income Statement For the Month Ended April 30, 2020 Total Sales (10,000 units) Variable costs Contribution margin Fixed expenses Net income $500,000 250,000 250,000 189,900 $60,100 Per Unit $50 25.00 $25.00 Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%. Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Roundarrow_forwardHudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,500 units at $225 each) Variable costs (10,500 units at $180 each) Contribution margin Fixed costs Income $ 2,362,500 1,890,000 472,500 369,000 $ 103,500 Exercise 5-18 (Algo) Evaluating strategies-price increase LO C2 If the company raises its selling price to $240 per unit. 1. Compute Hudson Company's contribution margin per unit. 2. Compute Hudson Company's contribution margin ratio. 3. Compute Hudson Company's break-even point in units. 4. Compute Hudson Company's break-even point in sales dollars. 1. Contribution margin 2. Contribution margin ratio 3. Break-even in units 4. Break-even sales dollars per unit % unitsarrow_forward
- I need help with question is answerarrow_forwardA manufacturer's contribution margin income statement for the year follows. Prepare a contribution margin income statement if the number of units sold (a) increases by 300 units and (b) decreases by 300 units. Sales ($12 per unit x 10,300 units) $123,600 Variable costs 72,100 Contribution margin 51,500 Fixed costs Income 41,000 $ 10,500 Sales Variable costs Contribution Margin Income Statement For Year Ended December 31 Contribution margin Fixed costs Income 10,600 units sold 10,000 units sold $ 127,200 $ 120,000 $ 41,000 41,000 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.arrow_forward
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