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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) $2,160,000 Variable costs (9,600 units at $180 each) 1,728,000 Contribution margin $ 432,000 Fixed costs 324,000 Pretax income 108,000 $ The marketing manager believes that increasing advertising costs by $81,000 in 2018 will increase the company's sales volume to 11,000 units. Prepare a forecasted contribution margin income statement for 2018 assuming the company incurs the additional advertising costs. HUDSON CO Forecasted Contribution Margin Income Statement For Yoar Ended December 31, 2018 Sales Variable costs Contribution margin Foxed costs Income (prata) $ Should the company incur the additional advertising costs? 0 0

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