Required information Skip to question [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (10,300 units at $375 each) $ 3,862,500 Variable costs (10,300 units at $300 each) 3,090,000 Contribution margin $ 772,500 Fixed costs 600,000 Pretax income $ 172,500 The marketing manager believes that increasing advertising costs by $165,000 in 2018 will increase the companys sales volume to 11,700 units. Prepare a forecasted contribution margin income statement for 2018 assuming the company incurs the additional advertising costs.

Hudson Co. Forecast Contribution Margin Income Statement For Year Ended December 3, 2018
Sales
Variable cost
Contribution margin
Income (pretax)
Should the company incur the additional advertising costs?