Question: HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,900 units at $225 each) $ 2,227,500 Variable costs (9,900 units at
HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2015 Sales (9,900 units at $225 each) $ 2,227,500 Variable costs (9,900 units at $180 each) 1,782,000 Contribution margin $ 445,500 Fixed costs 326,700 Pretax income $ 118,800 The marketing manager believes that increasing advertising costs by $84,000 in 2016 will increase the companys sales volume to 11,300 units. Prepare a forecasted contribution margin income statement for 2016 assuming the company incurs the additional advertising costs.
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