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Hudson Co. reports the contribution margin income statement for 2017.
| HUDSON CO. |
| Contribution Margin Income Statement |
| For Year Ended December 31, 2017 |
| Sales (10,500 units at $225 each) | $ | 2,362,500 | |
| Variable costs (10,500 units at $180 each) | | 1,890,000 | |
| Contribution margin | $ | 472,500 | |
| Fixed costs | | 369,000 | |
| Pretax income | $ | 103,500 | |
| |
1. Compute Hudson Co.'s break-even point in units and.
2. Compute Hudson Co.'s break-even point in sales dollars.
3. Assume Hudson Co. has a target pretax income of $171,000 for 2018. What amount of sales (in dollars) is needed to produce this target income?
4. If Hudson achieves its target pretax income for 2018, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.)
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