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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 (10,000 units at $300
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,000 units at $300 each) $ 3,000,000 Variable costs (10,000 units at $240 each) 2,400,000 Contribution margin 600,000 Fixed costs 420,000 Income $ 180,000 The marketing manager believes that increasing advertising costs by $176,000 will increase the companys sales volume to 11,400 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs
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