! Required information (The following information applies to the questions displayed below.) Hudson Co. reports...
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! Required information (The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (11,100 units at $375 each) Variable costs (11,100 units at $300 each) Contribution margin Fixed costs Pretax income $4,162,500 3, 330,000 832,500 660,000 $ 172,500 Assume the company is considering investing in a new machine that will increase its fixed costs by $38,000 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales 0 Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine? 0
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