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HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,000 units at $375 each) Variable costs (10,000 units at $300 each)
HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,000 units at $375 each) Variable costs (10,000 units at $300 each) Contribution margin Fixed costs Pretax income $3,750,000 3,000,000 $ 750,000 600,000 $ 150,000 1. Compute the company's degree of operating leverage for 2019. 2. If sales decrease by 4% in 2020, what will be the company's pretax income? 3. Assume sales for 2020 decrease by 4%. Prepare a contribution margin income statement for 2020. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the company's degree of operating leverage for 2019. (Round your answer to 1 decimal place.) Degree of operating leverage 5.0 Required 1 Required 2 > . Compute the company's degree of operating leverage for 2019. 2. If sales decrease by 4% in 2020, what will be the company's pretax income? B. Assume sales for 2020 decrease by 4%. Prepare a contribution margin income Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If sales decrease by 4% in 2020, what will be the company's pretax income? Pretax income
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