Question
[The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO.Contribution Margin Income StatementFor Year
[The following information applies to the questions displayed below.]
Hudson Co. reports the contribution margin income statement for 2017.
HUDSON CO.Contribution Margin Income StatementFor Year Ended December 31, 2017Sales (10,400 units at $280 each)$2,912,000Variable costs (10,400 units at $210 each)2,184,000Contribution margin$728,000Fixed costs567,000Pretax income$161,000
Assume the company is considering investing in a new machine that will increase its fixed costs by $44,500 per year and decrease its variable costs by $8 per unit. forecasted contribution margin income statement for 2018 assuming the company purchases this machine.
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