HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (11,400 units at $225 each) Variable costs (11,400 units at $180 each) Contribution margin Fixed costs Pretax income $2,565,000 2,052,000 $ 513,000 360,000 $ 153,000 Exercise 21-18 Evaluating strategies LO C2 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. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales 0 Variable costs Contribution margin Fixed costs Income (pretax) Should the company purchase the machine? $ 0