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

HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (9,600 units at $225 each)	$ 2,160,000
Variable costs (9,600 units at $180 each)	1,728,000
Contribution margin	432,000
Fixed costs	324,000
Income	$ 108,000

Exercise 18-19 (Static) Evaluating strategiesnew machine LO C2

The company is considering buying 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 contribution margin income statement for the next year assuming the company purchases this machine.

Use the following information for the Exercises below. (Static) [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement