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HUDSON CO. | |
Forecasted Contribution Margin Income Statement | |
For Year Ended December 31, 2018 | |
Sales | $ 2,160,000 |
Variable Costs (9,600 units × (180-9)) | 1,641,600 |
Contribution Margin | $ 518,400 |
Fixed costs (324,000 + 40,500) | 364,500 |
Income (Pretax) | $ 153,900 |
Should the company purchase the machine? | Yes |
Note: Investment in New Machine will increase the pretax income from $108,000 to $153,900. Hence, company should Invest in the new machine. |
The following information applies to the questions displayed below Hudson Co. reports the contribution margin income...
[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 (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 Pretax income $ 103,500 2 ! Part 1 of 5 Required information Use the following information for the Exercises below. [The following information applies to the...
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,500 units at $225 each) Variable costs (10,500 units at $180 each) Contribution margin Fixed costs $2,362,500 1,890,000 472,500 369,000 $ 103,500 Pretax income 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars. units 1. Break-even point 2....
Required information [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 (10,100 units at $300 each) Variable costs (10,100 units at $240 each) Contribution margin Fixed costs Pretax income $3,030,000 2,424,000 $ 606,000 468,000 $ 138,000 Assume the company is considering investing in a new machine that will increase its fixed costs by $43,000 per year and...
Required information [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,300 units at $175 each) Variable costs (11,300 units at $140 each) Contribution margin Fixed costs Pretax income .. $1,977,500 1,582,000 395,500 315,000 $ 80,500 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars. 1. units Break-even point...
Required information 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 (10,100 units at $300 each) Variable costs (10,100 units at $240 each) Contribution margin Fixed costa Pretax income $3,030,000 2,424,000 $ 606,000 468,000 $ 138,000 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...
Required information 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 1. Compute Hudson Co.'s break-even point in units and. 2. Compute Hudson Co.'s break-even point in sales dollars. 1. Assume Hudson...
Required information The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,500 units at $225 each) $2,587,500 Variable coats (11,500 units at $180 ench) 2.070,000 Contribution margin 517,500 Fixed costa 360,000 Pretax income $ 157,500 Assume the company is considering investing in a new machine that will increase its fixed costs by $36,000 per year and decrease...
Required information 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 (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin Fixed costs Pretax income $3,136,00 2,352.000 $ 784,000 567.000 $ 217.000 1. Assume Hudson Co. has a target pretax income of $156,000 for 2018. What amount of sales (in dollars) is needed...
Required information 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 (11,200 units at $280 each) Variable costs (11,200 units at $210 each) Contribution margin Fixed costs Pretax income $3,136,00 2,352.000 $ 784,000 567.000 $ 217.000 1. Assume Hudson Co. has a target pretax income of $156,000 for 2018. What amount of sales (in dollars) is needed...
Required information 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 1. Compute Hudson Co.'s break-even point in units and. 2. Compute Hudson Co.'s break-even point in sales dollars. units 1. 2....