Hudson Company reports the following contribution margin income statement. Sales (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 The company is considering buying a new machine that will increase its fixed costs by $41,000 per year and decrease its variable costs by $10 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income/Loss $ 2,716,000 2,037,000 679,000 441,000 $ 238,000
Hudson Company reports the following contribution margin income statement. Sales (9,700 units at $280 each) Variable costs (9,700 units at $210 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 The company is considering buying a new machine that will increase its fixed costs by $41,000 per year and decrease its variable costs by $10 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this machine. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income/Loss $ 2,716,000 2,037,000 679,000 441,000 $ 238,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Hudson Company reports the following contribution margin income statement.
Sales (9,700 units at $280 each)
Variable costs (9,700 units at $210 each)
Contribution margin
Fixed costs
Income
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
The company is considering buying a new machine that will increase its fixed costs by $41,000 per year and decrease its variable
costs by $10 per unit. Prepare a contribution margin income statement for the next year assuming the company purchases this
machine.
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales
Variable costs
Contribution margin
Fixed costs
Income/Loss
$ 2,716,000
2,037,000
679,000
441,000
$ 238,000
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