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Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,200 units at $225

Hudson Company reports the following contribution margin income statement.

HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (10,200 units at $225 each) $ 2,295,000
Variable costs (10,200 units at $180 each) 1,836,000
Contribution margin 459,000
Fixed costs 360,000
Income $ 99,000

the following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,200 units at $225 each) $ 2,295,000 Variable costs (10,200 units at $180 each) 1,836,000 Contribution margin 459,000 Fixed costs 360,000 Income $ 99,000

The company is considering buying a new machine that will increase its fixed costs by $43,500 per year and decrease its variable costs by $9 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine.

HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales
Variable costs
Contribution margin 0
Fixed costs
Income/Loss $0

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