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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

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 (10,400 units at $280 each) $ 2,912,000
Variable costs (10,400 units at $210 each) 2,184,000
Contribution margin 728,000
Fixed costs 567,000
Income $ 161,000

The marketing manager believes that increasing advertising costs by $166,000 will increase the companys sales volume to 11,800 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs.

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