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Assume the company is considering investing in a new machine that will increase its fixed costs by $40,500 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine.

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Answer:

Explanation:

*Data is incomplete a similar question is attached with the answer and answer is made accordingly.

                                                Hundson Co

                 Forecasted Contribution Margin Income Statement

                          For year ended December 31, 2017

                                                                   $

Sales (9600 x 225)                           2,160,000

Variable Cost (9600 x (180-9))          1,641,600

Contribution Margin                             518,400

Fixed Cost (324,000+40,500)           364,500

Pretax Income                                      153,900

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