Hudson Co. reports the contribution margin income statement for 2019.

Assume the company is considering investing in a new machine that will increase its fixed costs by $45,500 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine.

HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10, 600 units at $300 each) Variable costs (10,600 units at $240 each) Contribution margin Fixed costs Pretax income $3,180,000 2,544,000 636,000 480,000 $ 156,000 HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine