Hudson co.

Contribution margin income statement

for year ended December 31, 2017

Sales (11,500 units at $225 each) $2,587,500

Variable costs (11.500 units at $180 each) $2,070,000

contribution margin $ 517,500

Fixed costs $360,000

Pretax income $157,500

The marketing manager believes that increasing advertising costs by $123,000 in 2018 will increase the company's sales volume to 12,900 units. decide a forecasted contribution margin income statement for 2018 assuming the company incurs the additional advertising costs.

Sales = ???

Variable cost =??

Contribution margin = ???

Fixed costs = ???

Income (pretax) = ????

Should the company incur the additional advertising costs = ?? ( yes or no?)