HADSON . Margin Income Statement The marketing manager belileves thet increasing advertising costs by S166,000 in 2018 will increase the company's sales volume to 11,800 units. Prepare a forecasted contribution margin income statement for 2018 assuming the company incurs the additional advertising costs. For Year Ended December 31, 2817 $2,912,000 184,000 Sales (10,400 units at $280 each) Variable costs (10,400 units at $218 each) Contribution margn Pixed costs Pretax income 567,000 161,000 Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fxed costs Income (pretax) Should the company incur the additional advertising costs? units 2 Break-even point 1. Assume Hudson Co. has a target pretax income of $170,000 for 2018. What amount of sales in dollars) is needed to produce this target ncome? 2. If Hudson achieves its target pretax income for 2018, what is its margin of safety (in percent)? (Round your answer to 1 decimel place. 1 Amount of sales 2 Margin of saflety the company is considering investing in o new machine thet will e its fixed costs by $44,500 per year and decreose its variable s by $8 per unit. Prepare a forecasted contribution margin income t for 2018 ossuming the compony purchases this machine. For Year Ended December 31, 2018 Sales Vaniable costs Contribution margin Foved costs Income (pretax) Should the company purchase the machine? per unit 3 Break-even point units 4. Break-even sales dollars