8. Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income...

8.

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

HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2019
Sales (10,300 units at $375 each)	$	3,862,500
Variable costs (10,300 units at $300 each)		3,090,000
Contribution margin		772,500
Fixed costs		600,000
Pretax income	$	172,500

1. Assume Hudson Co. has a target pretax income of $169,000 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)? (Round your answer to 1 decimal place.)


1.	Amount of sales
2.	Margin of safety	%

Expert Solution

ekkarill92 answered 2 years ago

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