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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 (11,500 units at
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,500 units at $225 each) Variable coste (11,500 unite at $180 each) Contribution margin Fixed conte Incone $2,587,500 2,020,000 517,500 360,000 $157,500 Exercise 18-17 (Algo) Evaluating strategies- advertising LO C2 The marketing manager believes that increasing advertising costs by $123,000 will increase the company's sales volume to 12,900 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs. Sales HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Variable costs Contribution margin Fixed costs 0 Income/Loss $ 0
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