Hudson Co. reports the contribution margin income statement for 2017.

HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2017
Sales (11,600 units at $225 each)	$	2,610,000
Variable costs (11,600 units at $180 each)		2,088,000
Contribution margin	$	522,000
Fixed costs		315,000
Pretax income	$	207,000

1. Compute Hudson Co.'s break-even point in units and. 2. Compute Hudson Co.'s break-even point in sales dollars.

units Break-even point Break-even point Assume the company is considering investing in a new machine that will increase its fixed costs by $35,500 per year and decrease its variable costs by $8 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 Variable costs Contribution margin Fixed costs Income (pretax) Should the company purchase the machine? If the company raises its selling price to $240 per unit. 1. Compute Hudson Co.'s contribution margin per unit 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars. per unit Contribution margin Contribution margin ratio Break-even point Break-even sales dollars 3. units The marketing manager believes that increasing advertising costs by $165,000 in 2018 will increase the company's sales volume to 13,000 units. Prepare a forecasted contribution margin income statement for 2018 assuming the company incurs the additional advertising costs. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fixed costs Income (pretax) Should the company incur the additional advertising costs