Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. Dollar sales for target income Margin of safety $ 2,160,000 1,728,000 432,000 324,000 $ 108,000 %
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Income 1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? Note: Round your answer to 1 decimal place. Dollar sales for target income Margin of safety $ 2,160,000 1,728,000 432,000 324,000 $ 108,000 %
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....
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![Hudson Company reports the following contribution margin income statement.
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (9,600 units at $225 each)
Variable costs (9,600 units at $180 each)
Contribution margin
Fixed costs
Income
1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income?
2. If Hudson achieves its target income, what is its margin of safety (in percent)?
Note: Round your answer to 1 decimal place.
. Dollar sales for target income
2. Margin of safety
$ 2,160,000
1,728,000
432,000
324,000
$ 108,000
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91c35ad1-3f58-45e1-9eb9-c469a0bfe4fd%2F584cb7a2-3a5b-4182-87c1-e646f737c26c%2F8y7wrem_processed.png&w=3840&q=75)
Transcribed Image Text:Hudson Company reports the following contribution margin income statement.
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (9,600 units at $225 each)
Variable costs (9,600 units at $180 each)
Contribution margin
Fixed costs
Income
1. Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income?
2. If Hudson achieves its target income, what is its margin of safety (in percent)?
Note: Round your answer to 1 decimal place.
. Dollar sales for target income
2. Margin of safety
$ 2,160,000
1,728,000
432,000
324,000
$ 108,000
%
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