Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10,000 units.

Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10,000 units. 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. Should the company purchase the machine? Yes No