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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 (11,100 units at

 

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,100 units at $375 each) Variable costs (11,100 units at $300 each) Contribution margin Fixed costs Income $ 4,162,500 3,330,000 832,500 660,000 $ 172,500 The marketing manager believes that increasing advertising costs by $189,000 will increase the company's sales volume to 12,500 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 Income/Loss 0 $ 0

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