Hudson Co. reports the contribution margin income statement for 2015. Assume sales remain constant at 10.000 units. HUDSON CO.
Contribution Margin Income Statement
For Year Ended December 31, 2015
Sales (10,000 units at $244 each) $2,440,000
Variable costs (10,000 units at $195 each) 1,950,000
Contribution margin 490,000
Fixed costs 327,600
Pretax Income $162,400
Assume the company is considering investing in a new machine that will increase its fixed costs by $42,500 per year and decrease its variable costs by $10 per unit.
Prepare a forecasted contribution margin income statement for 2016 assuming the company purchases this machine.

When interest is compounded continuously, the amount of money increases at a rate proportional to the amount s present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) find the amount of money accrued at the end of 3 years when $4000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (round your answer to the nearest cent.) $ (b) in how many years will the initial sum deposited have doubled? (round your answer to the nearest year.) years (c) use a calculator to compare the amount obtained in part (a) with the amount s = 4000 1 + 1 4 (0.0575) 3(4) that is accrued when interest is compounded quarterly. (round your answer to the nearest cent.) s = $