Business, 13.08.2021 01:40 eskarletche8

Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10.000 units. HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2015
Sales (10,000 units at $244 each) $2,440,000
Variable costs (10,000 units at $195 each) 1,950,000
Contribution margin 490,000
Fixed costs 327,600
Pretax Income $162,400
Assume the company is considering investing in a new machine that will increase its fixed costs by $42,500 per year and decrease its variable costs by $10 per unit.
Prepare a forecasted contribution margin income statement for 2016 assuming the company purchases this machine.

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Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant a...

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