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[The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019.

HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2019
Sales (10,900 units at $225 each)	$	2,452,500
Variable costs (10,900 units at $180 each)		1,962,000
Contribution margin		490,500
Fixed costs		387,000
Pretax income	$	103,500

The marketing manager believes that increasing advertising costs by $78,000 in 2020 will increase the companys sales volume to 12,300 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs.

HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company incur the additional advertising costs