Business, 11.06.2021 23:30 maddynichole2017

Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,100 units at $300 each) $ 3,030,000 Variable costs (10,100 units at $240 each) 2,424,000 Contribution margin 606,000 Fixed costs 468,000 Pretax income $ 138,000 Assume the company is considering investing in a new machine that will increase its fixed costs by $43,000 per year and decrease its variable costs by $8 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine

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Answer from: darg3990rgp2t0r2

Hudson Co.

HUDSON CO.

Forecasted Contribution Margin Income Statement

For Year Ended December 31, 2020

Sales (10,100 units at $300 each) $ 3,030,000

Variable costs (10,100 units at $232 each) 2,343,200

Contribution margin 686,800

Fixed costs 511,000

Pretax income $ 175,800

Explanation:

a) Data and Calculations:

HUDSON CO.

Contribution Margin Income Statement

For Year Ended December 31, 2019

Sales (10,100 units at $300 each) $ 3,030,000

Variable costs (10,100 units at $240 each) 2,424,000

Contribution margin 606,000

Fixed costs 468,000

Pretax income $ 138,000

HUDSON CO.

Forecasted Contribution Margin Income Statement

For Year Ended December 31, 2020

Sales (10,100 units at $300 each) $ 3,030,000

Variable costs (10,100 units at $232 each) 2,343,200 ($240 - $8)

Contribution margin 686,800

Fixed costs 511,000 ($468,000+$43,000)

Pretax income $ 175,800

b) Hudson's pretax income will increase by $37,800 ($175,800 - $138,000), assuming it invests in the "new machine that will increase its fixed costs by $43,000 per year and decrease its variable costs by $8 per unit."

Answer from: Quest

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Answer from: Quest

They are enjoying the advantage of independence while running their own small business. they can go where they want when they want to, because they control the restaurant's hours. they can also make time for life emergencies, and set the hours to be when they do the best cooking.

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Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin...