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Required information [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 (11,000 units at $300 each) Variable costs (11,000 units at $240 each) Contribution margin Fixed costs Income $ 3,300,000 2,640,000 660,000 360,000 $ 300,000 The marketing manager believes that increasing advertising costs by $125,000 will increase the company's sales volume to 12,400 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs. % Answer is complete but not entirely correct. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales 3,300,000 Variable costs 2,552,000 Contribution margin 748,000 Fixed costs 398,500 Income/Loss 349,500