Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (10,200 units at $225 each)$ 2,295,000 Variable costs (10,200 units at $180 each)1,836,000 Contribution margin459,000 Fixed costs360,000 Income$ 99,000 The marketing manager believes that increasing advertising costs by $87,000 will increase the company’s sales volume to 11,600 units. Prepare a contribution margin income statement for the next year assuming the company incurs the additional advertising costs.
