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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 Margin Income

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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 Margin Income Statement For Year Ended December 31 Sales (10,300 units at $375 each) Variable costs (10,300 units at $300 each) Contribution margin Fixed costs Income $ 3,862,500 3,090,000 772,500 600,000 $ 172,500 The marketing manager believes that increasing advertising costs by $165.000 will increase the company's sales ime to 11,700 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs. The marketing manager believes that increasing advertising costs by $165,000 will increase the company's sales volume to 11,700 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 Contribution margin Fixed costs Income/Loss If the company raises its selling price to $400 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. per unit % 1. Contribution margin 2. Contribution margin ratio 3 Break-even point 4. Break-even sales dollars units The company is considering buying a new machine that will increase its fixed costs by $44,000 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 HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income Loss

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