Question: Hudson Co. reports the contribution margin income statement for 2015. Assume sales and variable costs per unit remain constant. The marketing manager believes that increasing

Hudson Co. reports the contribution margin income statement for 2015. Assume sales and variable costs per unit remain constant. The marketing manager believes that increasing advertising costs by $71,000 in 2016 will increase the company's sales volume to 10,000 units. Prepare a forecasted contribution margin income statement for 2016 assuming the company incurs the additional advertising costs. Should the company incur the additional advertising costs? Yes No
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