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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 (9,600 units at

 

Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Income $ 2,160,000 1,728,000 432,000 324,000 $ 108,000 The marketing manager believes that increasing advertising costs by $81,000 will increase the company's sales volume to 11,000 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs. Sales HUDSON COMPAN Contribution Margin Income Statement For Year Ended December 31 Variable costs Contribution margin

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