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Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Pretax income $3,024,000 2,268,000 $ 756,000 567,000 $ 189,000 Exercise 21-16 Break-even LO P2 1. Compute Hudson Co.'s break-even point in units and. 2. Compute Hudson Co.'s break-even point in sales dollars. Answer is complete and correct. 1. 8,100 units Break-even point Break-even point 2. $ 2,268,000 Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Pretax income 53,024,000 2,268,000 $ 756,000 567,000 $ 189,000 Exercise 21-17 Target income and margin of safety (in dollars) LO C2 1. Assume Hudson Co. has a target pretax income of $162,000 for 2018. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2018. 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 Use the following information for the Exercises below. [The following information applies to the questions displayed below) Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Pretax income $3,024,000 2,268,000 $ 756,000 567 eee $ 189,000 Exercise 21-17 Target income and margin of safety (in dollars) LO C2 1. Assume Hudson Co. has a target pretax income of $162,000 for 2018. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target pretax income for 2018, 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 Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2017 HUDSON COU Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Pretax income $3,024,000 2,268,000 $ 756,000 567,000 $ 189,000 Exercise 21-16 Break-even LO P2 1. Compute Hudson Co.'s break-even point in units and. 2. Compute Hudson Co.'s break-even point in sales dollars. 1. Break-even point Break-even point units 2. Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below) Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,800 units at $280 each) Variable costs (10,800 units at $210 each) Contribution margin Fixed costs Pretax income $3,024,00 2.268,000 $ 756,000 567, oee $ 189, eee Exercise 21-18 Evaluating strategies LO C2 Assume the company is considering investing in a new machine that will increase its fixed costs by $39,500 per year and decrease its variable costs by 59 per unit. Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fixed costs Income (pretax) $ Should the company purchase the machine? 0 0

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