Refer to the information in Exercise 21-11. The marketing manager believes that increasing advertising costs by $81,000 will increase the company’s sales volume to 11,000 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs.

Data From Exercise 21-11

Hudson Co. reports the following contribution margin income statement. Compute 

(1) Break-even point in units and 

(2) Break-even point in sales dollars.

Transcribed Image Text:

Contributlon Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each).... Variable costs (9,600 units at $180 each)...... $2,160,000 1,728,000 Contribution margin .. 432,000 Fixed costs 324,000 Income.. $ 108,000