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Hudson Co. reports the contribution margin income statement for 2015 HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2015 $2,160,000 Sales (9,600
Hudson Co. reports the contribution margin income statement for 2015 HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2015 $2,160,000 Sales (9,600 units at $225 each) Variable costs (9,600 units at $180 each) 1,728,000 432,000 Contribution margin 324,000 Fixed costs 108,000 Pretax income 1. Compute the company's degree of operating leverage for 2015. Degree of operating 2. lf sales decrease by 5% in 2016, what will be the company's pretax income? Pretax income
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