Hudson Company reports the following contribution margin income statement.Hudson Company reports the following contribution margin income statement.A manufacturer's contribution margin income statement for the year follows.
Required:
Prepare a contribution margin income statement if the number of units
sold (a) increases by 200 units and (b) decreases by 200 units.
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Required:
1.Assume Hudson has a target income of $162,000. What amount of sales dollars is needed to produce this target income?
2.If Hudson achieves its target income, what is its margin of safety (in percent)?
Margin of safety
A manufacturer's contribution margin income statement for the year follows
Sales ($10 per unit x 10,000 units)
$100,000 60,000 40,000 30,000 $10,000
Variable costs
Contribution margin Fixed costs Income
Selling price per unit Units sold
$10 10,000 200
Change in units
Required: Prepare a contribution margin income statement if the number of units
sold (a) increases by 200 units and (b) decreases by 200 units
Contribution Margin Income Statement
For Year Ended December 31 sold
sold
Sales Variable costs Contribution margin Fixed costs Income