Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 9,900 units
HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2015
Sales (9,900 units at $239 each) $ 2,366,100
Variable costs (9,900 units at $190 each) 1,881,000
Contribution margin $ 485,100
Fixed costs 326,700
Pretax income $ 158,400
Assume the company is considering investing in a new machine that will increase its fixed costs by $42,000 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2016 assuming the company purchases this machine.