Required information. 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 (10,000 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Incone $ 2,452,500 1,962,000 490,500 357,000 $ 105,500 Exercise 21-12 (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? Note: Round your answer to 1 decimal place.

Required information. 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 (10,000 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Incone $ 2,452,500 1,962,000 490,500 357,000 $ 105,500 Exercise 21-12 (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? Note: Round your answer to 1 decimal place.

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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