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Hudson Co. reports the contribution margin income statement for 2019 Check my HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales

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Hudson Co. reports the contribution margin income statement for 2019 Check my HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,500 units at $225 each) Variable costs (10,5e0 units at $180 cach) Contribution margin Fixed costs Pretax income $2,362,500 1,890,000 472,500 369,000 $ 103,500 Exercise 21-20 Evaluating strategies LO C2 The marketing manager believes that increasing advertising costs by $90,000 in 2020 will increase the company's sales volume to 11,900 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Wariable costs Contribution margin Fixed costs come (pretax)Loss $ -hould the company incur the additional advertising costs? 0 0 S

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