Question: HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each)
HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) Contribution margin Fixed costs Pretax income 5 $2,160,000 1.728,000 432,000 324,000 $ 108,000 The marketing manager believes that increasing advertising costs by $81,000 in 2020 will increase the company's sales volume to 11,000 units. Prepare a forecasted contribution margin income statement for 2020 assuming the company incurs the additional advertising costs HUDSON CO Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 5 Sales 0 Variable costs Contribution margin Fixed costs Income (pretax)/L.05 Should the company incur the additional advertising costs? $ 0
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