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xeze [42]
4 years ago
9

g Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year

Ended December 31, 2019 Sales (10,400 units at $280 each) $ 2,912,000 Variable costs (10,400 units at $210 each) 2,184,000 Contribution margin 728,000 Fixed costs 567,000 Pretax income $ 161,000 Assume the company is considering investing in a new machine that will increase its fixed costs by $44,500 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.
Business
1 answer:
snow_tiger [21]4 years ago
3 0

Answer:

Forecasted contribution margin income statement for 2020

Sales (10,400 units at $280 each)                   $ 2,912,000

Variable costs (10,400 units at $202 each)   ($ 2,100,800)

Contribution margin                                              $ 811,200

Fixed costs ($567,000 + $44,500)                    ($ 611,500)

Pretax Income                                                      $199,700

Explanation:

Adjust the 2019 Contribution Income Statement by :

  1. Decreasing variable costs by $8 per unit and,
  2. Increasing Fixed cost by $44,500
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Explanation:

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1. Use a financial calculator or computer software program to answer the following questions:
netineya [11]

Answer:

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Explanation:

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b. In the second case

Data provided in the question    

Future value = $450,000

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