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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
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 S. Les (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Pretax income $2,227,500 1,782,090 $ 445,500 342,800 $ 183,500 The marketing manager believes that increasing advertising costs by $84,000 in 2018 will increase the company's sales volume to 11.300 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 Year Ended December 31, 2018 Sales 5 2 Variable costs Contribution margin Fixed costs income pretax Should me coming incut the additional advertising costs? 542 500 2034 000
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