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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 Yor Year Ended December 31, 2017 Bates (10,400 units at $280 each) 02,912.000 Variable coat (10,400 units at $210 each) 2.116.000 Contribution margin 5 720,000 Fixed cost 367,000 Pretax income $ 161,000 Assume the company is considering Investing in a new machine that will increase its fixed costs by $44,500 per year and decrease its variable costs by $8 per unit. Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine. 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 Yor Year Ended December 31, 2017 Bates (10,400 units at $280 each) 02,912.000 Variable coat (10,400 units at $210 each) 2.116.000 Contribution margin 5 720,000 Fixed cost 367,000 Pretax income $ 161,000 Assume the company is considering Investing in a new machine that will increase its fixed costs by $44,500 per year and decrease its variable costs by $8 per unit. Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fixed costs Income (pretax) $ Should the company purchase the machine? 0 0

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