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Required information [The following information applies to the questions displayed below. Hudson Co. reports the contribution margin income statement for 2017 HUDSON co. Contribution Margin

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Required information [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 (9,600 units at $225 each) Variable costs (9,600 units at $180 each) contribution margin Fixed costs Pretax income $2,160,000 1,728,000 $ 432,000 324,000 $ 108,000 Assume the company is considering investing in 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 forecasted contribution margin income statement for 2018 assuming the company purchases this machine

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