HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,700 units at $300 each) $ 3,210,000 Variable costs (10,700 units at $240 each) 2,568,000 Contribution margin $ 642,000 Fixed costs 504,000 Pretax income $ 138,000

If the company raises its selling price to $320 per unit.

1. Compute Hudson Co.'s contribution margin per unit.

2. Compute Hudson Co.'s contribution margin ratio.

3. Compute Hudson Co.'s break-even point in units.

4. Compute Hudson Co.'s break-even point in sales dollars.

1. Contribution margin per unit

2. Contribution margin ratio %

3. Break-even point units

4. Break-even sales dollars

1. Contribution margin per unit = $80

2. Contribution margin ratio % =25%

3. Break-even point units = 6300 units

4. Break-even sales dollars=  $2,016,000

Explanation:

Contribution margin per unit = Selling price per unit - Variable cost per unit

= $320 - $240

= $80

2. Contribution margin ratio = Contribution margin per unit / Selling price per unit  

= $80 / $320

= 25%

3. Break-even point in units = Fixed cost / Contribution margin per unit

= $504,000 / $80

= 6,300 units

4. Break-even point in sales dollars = (Fixed cost / Contribution margin per unit) X Selling price per unit

= ($504,000 / $80) X $320

= $2,016,000

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.