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HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each)

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HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Pretax income $2,227,500 1,782,000 $ 445,500 342,000 $ 103,500 Assume the company is considering investing in a new machine that will increase its fixed costs by $42,000 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

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