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.