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Required information [ The following information applies to the questions displayed below. ] Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution

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 units at $225
each)
Variable costs units at
$180 each)
Contribution margin
Fixed costs
Income
The company is considering buying a new machine that will increase its fixed costs by $39,000 per year and decrease
its variable costs by $10 per unit. Prepare a contribution margin income statement for the next year assuming the
company purchases this machine.
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