Solution-What amount of sales is needed to produce this

What amount of sales is needed to produce this target income

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Question - Hudson Co. reports the contribution margin income statement for 2019.

Sales (10,500 units at $225 each) $2,362,500

Variable costs (10,500 units at $180 each) $1,890,000

Contribution margin $472,500

Fixed costs $369,000

Pretax income $103,500

Required -

1. Assume Hudson Co. has a target pretax income of $171,000 for 2020. What amount of sales (in dollars) is needed to produce this target income?

2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)?

Reference no: EM132846892

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What amount of sales is needed to produce this target income

Reference no: EM132846892

Reference no: EM132846892

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