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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
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) Variable costs (10,400 units at $210 each) Contribution margin $ 2,912,000 2,184,000 728,000 567,000 $ 161,000 Fixed costs Income The company is considering buying a new machine that will increase its fixed costs by $44,500 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. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income/Loss %24
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