Question: ms - Chapter 18 Help Save & Exit Submit The following information applies to the questions displayed below) Hudson Co. reports the contribution margin income
ms - Chapter 18 Help Save & Exit Submit The following information applies to the questions displayed below) Hudson Co. reports the contribution margin income statement for 2017 5 IS HUDSON CO. Contribution Margin Teese Statement Por Year Ended December 31, 2017 Salos (9,700 units at $200 each) Variable costs (9.700 units at 1210 each) Contribution margin Fixed costa Pretax income $2.716.000 -2,032,900 $ 679,000 441,000 $ 238,000 The marketing manager believes that increasing advertising costs by $200,000 in 2018 will increase the company's sales volume to 11100 units. Prepare a forecasted contribution margin'income statement for 2018 assuming the company incurs the additional advertising costs HUDSON CO Forecasted Contribution Margin income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fored costs Income (pretao $ Should the company incur the additional advertising costs? 0
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