Why is this wrong?

(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 company is considering buying a new machine that will increase its fixed costs by $38,500 per year and decrease its variable costs by $8 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. The company is considering buying a new machine that will increase its fixed costs by $38,500 per year and decrease its variable costs by $8 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. Answer is complete but not entirely correct. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales $ 3,180,000 X Variable costs 2,438,000 X Contribution margin 742,000 Fixed costs 525,500 X Income/Loss $ 216,500