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Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 9,000 units. Assume the company is considering investing in a
Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 9,000 units. Assume the company is considering investing in a new machine that will increase its fixed costs by $37, 500 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin income statement for 2016 assuming the company purchased this machine. Should the company purchase the machine? Yes No
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