Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 82

Refer to the information in Exercise 21-16. 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 2016 assuming the company purchases this machine.
REFERENCE: Exercise 21-16
Hudson Co. reports the contribution margin income statement for 2015 below. Using this information, compute Hudson Co.'s (1) break-even point in units and (2) break-even point in sales dollars.