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Contribution Margin Income Statement Year Ended December 31, 201 Sales (11,400 units at $225 each) Variable costs (11,400 units at $180 each) Contribution margin Fixed

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Contribution Margin Income Statement Year Ended December 31, 201 Sales (11,400 units at $225 each) Variable costs (11,400 units at $180 each) Contribution margin Fixed conts Pretax income $2,565, 000 2,052,000 513,000 360-000 153,000 of 5 Exercise 18-18 Evaluating strategies LO C2 1:5725 Assume the company is considering investing in a new machine that will Increase its fixed costs by $36,500 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine. ook . Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fixed costs income (pretax) Should the company purchase the machine

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