Hudson Co. reports the contribution margin income statement for 2017.

HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2017
Sales (10,800 units at $280 each)	$	3,024,000
Variable costs (10,800 units at $210 each)		2,268,000
Contribution margin	$	756,000
Fixed costs		567,000
Pretax income	$	189,000

1. Compute Hudson Co.'s break-even point in units and. 2. Compute Hudson Co.'s break-even point in sales dollars.

3. Assume the company is considering investing in a new machine that will increase its fixed costs by $39,500 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2018 assuming the company purchases this machine.