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 (10,200 units at $225 each) Variable costs (10,200 units at $180 each) Contribution margin Fixed costs Pretax income $2,295,000 1,836,000 459,000 36 , $ 99 , Exercise 18-18 Evaluating strategies LO C2 Assume the company is considering investing in a new machine that will increase its fixed costs by $43,500 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine HUDSON CO Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Vanable costs Contribution margin Foed costs Income (prelaxVLoss Should the company purchase the machino? If the company raises its selling price to $240 per unit. ok 1. Compute Hudson Co.'s contribution margin per unit. 2. Compute Hudson Co.'s contribution margin ratio. 3. Compute Hudson Co.'s break-even point in units. 4. Compute Hudson Co.'s break-even point in sales dollars. 1 per unit % 2 Contribution margin Contribution margin ratio Break-even point Break-even sales dollars 3 units 4 The marketing manager believes that increasing advertising costs by $87,000 in 2020 will increase the company's sales volume to 11600 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 S Should the company incur the additional advertising costs? 0 0