Subject: !Required information[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 (9,800 units at $280 each)Variable costs (9,800 units at $210 each)Contribution marginFixed costsIncome1. Dollar sales for target income2. Margin of safety$ 2,744,0002,058,0001. Assume Hudson has a target income of $162,000. What amount of sales (in dollars) is needed to produce this target income?2. If Hudson achieves its target income, what is its margin of safety (in percent)?Note: Round your answer to 1 decimal place.%686,000504,000$ 182,000

When target income is given and calculation is needed for determining target sales in amount then…

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,800 units at $280 each) Variable costs (9,800 units at $210 each) Contribution margin Fixed costs Income $ 2,744,000 2,058,000 686,000 504,000 $ 182,000 Accumo Hudson has a target income of $162.000. What amount of calos (in dollare) is nooded to produce this target incom

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,800 units at $280 each) Variable costs (9,800 units at $210 each) Contribution margin Fixed costs Income $ 2,744,000 2,058,000 686,000 504,000 $ 182,000 Accumo Hudson has a target income of $162.000. What amount of calos (in dollare) is nooded to produce this target incom

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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