ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- 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 COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,900 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs $ 2,452,500 1,962,000 490,500 387,000 Income $ 103,500 Exercise 18-12 (Algo) Target income and margin of safety LO C2 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. Amount of sales 2. Margin of safety %arrow_forwardAmazing Airlines has the following customer metrics: Average customer relationship length: 8 years Average number of flights per customer per year: 2.5 Average cost per ticket: $600 Profit margin per customer: 8% The net CLV for Amazing Airlines is closest to? O $18,000 $960 $1260 O $12,000arrow_forwardSINGLE-PRODUCT BREAK-EVEN ANALYSIS Stephens, Inc., wants to determine the minimum dollar volume and unit volume needed at its new facilityto break even.APPROACH c The firm first determines that it has fixed costs of $10,000 this period. Direct labor is$1.50 per unit, and material is $.75 per unit. The selling price is $4.00 per unit.arrow_forward
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