10)

Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10,500 units.

HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2015
Sales (10,500 units at $269 each)	$	2,824,500
Variable costs (10,500 units at $220 each)		2,310,000
Contribution margin	$	514,500
Fixed costs		332,100
Pretax income	$	182,400

Assume the company is considering investing in a new machine that will increase its fixed costs by $45,000 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2016 assuming the company purchases this machine.