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The following information applies to the questions displayed below Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement
The following information applies to the questions displayed below Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Soles (9,600 units at $225 coch) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Pretax income $2,160,000 1.228. $ 82.ee Assume the company is considering investing in a new machine that will increase its fixed costs by $40.500 per year and decrease its variable costs by $9 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 $ 2,160.000 Variable costs 171 Contribution margin Fbced costs Income (prelax) 2 159,829 Should the company purchase the machine? Harrison Company expects to sell 200,000 units of its product next year, which would generate total sales of $17,000,000. Management predicts that pretax net income for next year will be $1,250,000 and that the contribution margin per unit will be $25 Complete the below table to calculate the next year's total expected variable costs and fixed costs. HARRISON COMPANY Forecasted Contribution Margin Income Statement Units S per unit 200.000 Contribution margin $ 25
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