omewor Required information Use the following information for the Exercises belo

Question

omewor Required information Use the following information for the Exercises below. The following information applies to the questions displayed below. Hudson Co. reports the contribution margin income statement for 2017 BUDSON co. Contribution Margin Income Statement r Year Ended December 31, 2017 Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Pretax income $2,227,500 1,782,000 $445,500 342,000 $ 103,500 Exercise 18-16 Break-even LO P2 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 2 Break-even point units

Explanation / Answer

Contribution margin per unit=$445500/9900=$45 per unit

1.Breakeven point=Fixed cost/Contribution margin

=(342000/45)=7600 units

2.Break-even point=(7600*$225)=$1,710,000.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.