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 StatementFor Year Ended December 31, 2019Sales (9,600 units at $225 each)Variable costs (9,600 units at $180 each)Contribution marginFixed costs$2,160,0001,728,000432,000324,000$ 108,000Pretax incomeThe marketing manager believes that increasing advertising costs by $81,000 in 2020 will increase the company's sales volume to11,000 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additionaladvertising costs.HUDSON COo.Forecasted Contribution Margin Income StatementFor Year Ended December 31, 2020SalesVariable costsContribution marginFixed costs2$Income (pretax)/LossShould the company incur the additional advertising costs? 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 StatementFor Year Ended December 31, 2019Sales (9,600 units at $225 each)Variable costs (9,600 units at $180 each)Contribution marginFixed costs$2,160,0001,728,000432,000324,000Pretax income$108,000If the company raises its selling price to $240 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.X Answer is complete but not entirely correct.1.Contribution margin2$60per unit2.Contribution margin ratio%253.Break-even point7,200 X units4.Break-even sales dollars$ 1,620,000 x< Prev1314of 1ост20

Forecasted Contribution Margin Income Statement Particulars Units Amounts Sales 11,000 225…

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. 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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

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A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Hudson Co. reports the contribution margin income statement for 2019 below. Contribution Margin Income StatementFor Year Ended December 31, 2019Sales (9,600 units at $225 each) . . . . . . . . . . . . . . . . . . . . $2,160,000Variable costs (9,600 units at $180 each) . . . . . . . . . . . . . 1,728,000Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432,000Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,000Pretax income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108,000 1. Assume Hudson Co. has a target pretax income of $162,000 for 2020. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round to one decimal place.)
Hudson Co. reports the contribution margin income statement for 2019 below. Contribution Margin Income StatementFor Year Ended December 31, 2019Sales (9,600 units at $225 each) . . . . . . . . . . . . . . . . . . . . $2,160,000Variable costs (9,600 units at $180 each) . . . . . . . . . . . . . 1,728,000Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432,000Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,000Pretax income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108,000 If the company raises its selling price to $240 per unit, computeits (1) contribution margin per unit, (2) contribution margin ratio, (3) break-even point in units, and(4) break-even point in sales dollars.
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 (10,400 units at $280 each) $ 2,912,000 Variable costs (10,400 units at $210 each) 2,184,000 Contribution margin 728,000 Fixed costs 567,000 Pretax income $ 161,000 Assume the company is considering investing in a new machine that will increase its fixed costs by $44,500 per year and decrease its variable costs by $8 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine
Hudson Co. reports the contribution margin income statement for 2019 below. Contribution Margin Income StatementFor Year Ended December 31, 2019Sales (9,600 units at $225 each) . . . . . . . . . . . . . . . . . . . . $2,160,000Variable costs (9,600 units at $180 each) . . . . . . . . . . . . . 1,728,000Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432,000Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,000Pretax income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108,000 Assume the company is considering investing in a new machinethat will increase its fixed costs by $40,500 per year and decrease its variable costs by $9 per unit.Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases thismachine.
Hudson Co. reports the contribution margin income statement for 2019 below. Using this information, compute Hudson Co.’s (1) break-even point in units and (2) break-even point in sales dollars. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) . . . . . . . . . . . . . . . . . . . . $2,160,000 Variable costs (9,600 units at $180 each) . . . . . . . . . . . . . 1,728,000 Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432,000 Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,000 Pretax income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108,000
Hudson Co. reports the contribution margin income statement for 2019 below. Contribution Margin Income StatementFor Year Ended December 31, 2019Sales (9,600 units at $225 each) . . . . . . . . . . . . . . . . . . . . $2,160,000Variable costs (9,600 units at $180 each) . . . . . . . . . . . . . 1,728,000Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432,000Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324,000Pretax income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 108,000 The marketing manager believes that increasing advertising costs by $81,000 in 2020 will increase the company’s sales volume to 11,000 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs.
a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution marginincome statement for the year ended December 31, 2019, detailing the components of total fixed costsand clearly showing contribution and net income. c) Calculate Benoit’s break-even point in units and in sales dollars.
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) $ 2,160,000 Variable costs (9,600 units at $180 each) 1,728,000 Contribution margin 432,000 Fixed costs 324,000 Pretax income $ 108,000 1. Compute Hudson Co.'s break-even point in units.2. Compute Hudson Co.'s break-even point in sales dollars. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) $ 2,160,000 Variable costs (9,600 units at $180 each) 1,728,000 Contribution margin 432,000 Fixed costs 324,000 Pretax income $ 108,000 3. Assume Hudson Co. has a target pretax income of $162,000 for 2020. What amount of sales (in dollars) is needed to produce this target income?4.If Hudson achieves its target pretax income for 2020, what is its margin of safety…
Given the following for Silver Company in 2019: revenues P5,300,000, manufacturing costs P2,200,000 (one-half fixed), and marketing and administrative costs P 2,700,000 (two-thirds variable). The contribution margin is:
Jaguar Corporation’s 2020 manufacturing costs were as follows: Prime cost P 1,120,000 Variable manufacturing overhead costs 160,000 Depreciation of factory building and equipment 120,000 Factory supervisor’s salary (P16,000 per month) 192,000 Other fixed factory overhead 80,000 What amount should be considered product cost for external reporting purposes for the year 2020? Group of answer choices P 1,280,000 P 1,292,000 P 1,360,000 P 1,672,000
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