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Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Hudson Co, reports the contribution margin
Required information Use the following information for the Exercises below. [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 (10,300 units at $375 each) $3,862,500 Variable costs (10,300 units at $300 each) 3,890,000 Contribution margin 772,500 Fixed costs 600,000 Pretax income $ 172,500 34 Exercise 18-20 Evaluating strategies LO C2 The marketing manager believes that increasing advertising costs by $165,000 in 2020 will increase the company's sales volume to 11700 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 5 Variable costs Contribution margin Fixed costs Income (prox05 $ Should the company incur the additional advertising costs? 3.862,500 3.000.000 772,500 600,000 172,500
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