Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,100 units at $375 each) Variable costs (11,100 units at $300 each) Contribution margin Fixed costs Income $ 4,162,500 3,330,000 832,500 660,000 $ 172,500 The company is considering buying a new machine that will increase its fixed costs by $38,000 per year and decrease its variabl costs by $9 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. Sales HUDSON COMPANY Contribution Margin Income Statement Variable costs For Year Ended December 31 Contribution margin Fixed costs Income 0 $ 0
Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,100 units at $375 each) Variable costs (11,100 units at $300 each) Contribution margin Fixed costs Income $ 4,162,500 3,330,000 832,500 660,000 $ 172,500 The company is considering buying a new machine that will increase its fixed costs by $38,000 per year and decrease its variabl costs by $9 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. Sales HUDSON COMPANY Contribution Margin Income Statement Variable costs For Year Ended December 31 Contribution margin Fixed costs Income 0 $ 0
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5PB: Wellington, Inc., reports the following contribution margin income statement for the month of May....
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![Hudson Company reports the following contribution margin income statement.
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (11,100 units at $375 each)
Variable costs (11,100 units at $300 each).
Contribution margin
Fixed costs
Income
$ 4,162,500
3,330,000
832,500
660,000
$ 172,500
The company is considering buying a new machine that will increase its fixed costs by $38,000 per year and decrease its variabl
costs by $9 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this
machine.
Sales
HUDSON COMPANY
Contribution Margin Income Statement
Variable costs
For Year Ended December 31
Contribution margin
Fixed costs
Income
0
$
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fca301453-be9a-4c83-ba55-65e4cc835f51%2F7d500a2f-dd97-4e30-ae9a-3b6aa9190e2a%2F8671k4k_processed.png&w=3840&q=75)
Transcribed Image Text:Hudson Company reports the following contribution margin income statement.
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (11,100 units at $375 each)
Variable costs (11,100 units at $300 each).
Contribution margin
Fixed costs
Income
$ 4,162,500
3,330,000
832,500
660,000
$ 172,500
The company is considering buying a new machine that will increase its fixed costs by $38,000 per year and decrease its variabl
costs by $9 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this
machine.
Sales
HUDSON COMPANY
Contribution Margin Income Statement
Variable costs
For Year Ended December 31
Contribution margin
Fixed costs
Income
0
$
0
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