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What amount of sales is needed to produce

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Reference no: EM132502580

Hudson Co.

Contribution margin income statement

For year ended December 31, 2017

Sales (11,500 units at $225 each) $2,587,500

Variable costs (11,500 units at $180 each) $2,070,000

Contribution margin $ 517,500

Fixed costs $360,000

Pretax income $157,500

Question 1: Assume Hudson Co. has a target pretax income of $154,000 for 2018. What amount of sales (in dollars) is needed to produce this target income?

Question 2: If Hudson achieves its target pretax income for 2018, what is its margin of safety (in percent)? Round to one decimal point.

Reference no: EM132502580

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