HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,700 units at $300 each) $ 3,210,000 Variable costs (10,700 units at $240 each) 2,568,000 Contribution margin $ 642,000 Fixed costs 504,000 Pretax income $ 138,000

If the company raises its selling price to $320 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.

1. Contribution margin per unit

2. Contribution margin ratio %

3. Break-even point units

4. Break-even sales dollars

scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.