! Required information [The following information applies to the questions displayed below.) 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. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs on margin Fixed costs Income/Loss If the company raises its selling price to $240 per unit. 1. Compute Hudson Company's contribution margin per unit. 2. Compute Hudson Company's contribution margin ratio. 3. Compute Hudson Company's break-even point in units. 4. Compute Hudson Company's break-even point in sales dollars. 1. Contribution margin 2. Contribution margin ratio per unit % 3. Break-even in units units 4. Break-even sales dollars The company is considering buying a new machine that will increase its fixed costs by $40,500 per year and decrease its variable costs by $9 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income