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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 (11,600 units at $225 each)	$	2,610,000
Variable costs (11,600 units at $180 each)		2,088,000
Contribution margin	$	522,000
Fixed costs		315,000
Pretax income	$	207,000

Assume the company is considering investing in a new machine that will increase its fixed costs by $35,500 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	0
Fixed costs
Income (pretax)	$0
Should the company purchase the machine?