new connect.mheducation.com Saved Required information The following information

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new connect.mheducation.com Saved Required information The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 . Sales (11,600 units at $225 each) Variable costs (11,600 units at $180 each) Contribution margin Fixed costs Pretax income $2,610,000 2,088,000 s 522,000 315,000 s207,000 ok Int ences 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 4 of 5 F3

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Solution: 1. Break even point 7000 units 2. Break even point $1,575,000 Working Notes; Contribution margin per unit = Selling price per unit - Variable cost per unit =$225-$180 =$45 per unit Break even point in units = Total fixed cost/ Contribution margin per unit =$315,000/$45 =7,000 units Break even point in dollars = break even point in units x selling price per unit =7000 x $225 =$1,575,000 Please feel free to ask if anything about above solution in comment section of the question.

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