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Hudson Co. reports the contribution margin income statement for 2017.

HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2017
Sales (10,700 units at $300 each)	$	3,210,000
Variable costs (10,700 units at $240 each)		2,568,000
Contribution margin	$	642,000
Fixed costs		504,000
Pretax income	$	138,000

Assume the company is considering investing in a new machine that will increase its fixed costs by $40,000 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	0
Fixed costs
Income (pretax)	$0
Should the company purchase the machine?