Compute hudson co break-even point in sales dollars

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

HUDSON CO. Contribution Margin Income Statement

For Year Ended December 31, 2015

Sales (10,300 units at $225 each) $ 2,317,500

Variable costs (10,300 units at $180 each) 1,854,000

Contribution margin $ 463,500

Fixed costs 264,000

Pretax income $ 199,500

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

1. Compute Hudson Co.'s contribution margin per unit.

2. Compute Hudson Co.'s contribution margin ratio.

3. Compute Hudson Co.'s break-even point in units.

4. Compute Hudson Co.'s break-even point in sales dollars.

Reference no: EM132049713

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