HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (9,900 units at $225 each) $2,227,500
Variable costs (9,900 units at $180 each) 1,782,000
Contribution margin 445,500
Fixed costs 342,000
Income $103,500
Units sold 9,900
Selling price per unit $225
Variable cost per unit $180
Target income $165,000
Required:
1. Assume Hudson has a target income of $165,000. What amount of sales dollars
needed to produce this target income?
Dollar sales for target income $2,535,000
2. If Hudson achieves its target income, what is its margin of safety (in percent)?
Margin of safety =((B22-