Question
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.
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