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