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Hudson Co. reports the contribution margin income statement for 2017.

HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2017
Sales (10,500 units at $225 each)	$	2,362,500
Variable costs (10,500 units at $180 each)		1,890,000
Contribution margin	$	472,500
Fixed costs		369,000
Pretax income	$	103,500

PART 1: Assume the company is considering investing in a new machine that will increase its fixed costs by $45,000 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.

Answer format:

HUDSON CO.
Forecasted Contribution Margin Income Statement
For Year Ended December 31, 2018
Sales
Variable costs
Contribution margin
Fixed costs
Income (pretax)
Should the company purchase the machine?

Part 2:

If the company raises its selling price to $240 per unit. 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.