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 (11,200 units at $280 each)Variable costs (11,200 units at $210 each)Contribution margin$3,136,0002,352,000784,000567,000$ 217,000Fixed costsPretax income1. Assume Hudson Co. has a target pretax income of $156,000 for 2020. What amount of sales (in dollars) is needed to produce thistarget income?2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)1. Amount of sales2. Margin of safety%

Target Pretax Income = $156,000 Total Contribution required = target pretax income + fixed cost

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 (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin Fixed costs $3,136,000 2,352,000 784,000 567,000 $ 217,000 Pretax income 1. Assume Hudson Co. has a target pretax income of $156,000 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 your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety

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 (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin Fixed costs $3,136,000 2,352,000 784,000 567,000 $ 217,000 Pretax income 1. Assume Hudson Co. has a target pretax income of $156,000 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 your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety

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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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
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 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.
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…
The GAAP income statement for Carla Vista Company for the year ended December 31, 2022,s shows sale $930,000, cost of good sold $555,000, and operating expenses $235,000. Assuming all costs and expenses are 70% variable and 30% fixed, prepare a CVP income statement through contribution margin.
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
The following information are available for X Corp: (The company uses actual costing). What is the Profit in 2019 under absorption costing? 2019 Beginning Inventory None Production 10,000 units Ending Inventory 3,500 units Sales at 2 per unit ?? Variable Mfg cost in total pesos 7,500 Fixed Mfg cost 5,000 OPEX (50% FC) 4,500 2020 Beginning Inventory ?? Production 9,000 units Ending Inventory 1,000 units Sales at 2 per unit ?? Variable Mfg cost in total pesos ?? Fixed Mfg cost 5,400 (increased by 400 for change of total FC of the company) OPEX (50% FC) 7,500