Business, 16.06.2020 17:57 jimmy8816

Hudson Co. reports the contribution margin income statement for 2015. 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

If the company raises its selling price to $240 per unit.

Required:
a. Compute Hudson Co.'s contribution margin per unit.
b. Compute Hudson Co.'s contribution margin ratio.
c. Compute Hudson Co.'s break-even point in units.
d. Compute Hudson Co.'s break-even point in sales dollars.

Answers: 3

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Hudson Co. reports the contribution margin income statement for 2015. Sales (9,600 units at $225 ea...

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