Hudson Co. reports the contribution margin income statement for 2017, HUDSON co. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (8,600 units at $240 each) Variable costs (8,600 units at $180 each) Contribution margin Fixed costs Pretax income 2,064,00e 1,548,e00 $ 516,000 387,000 $129,00e 1. Compute the company's degree of operating leverage for 2017 2. If sales decrease by 5% in 2018, what will be the company's pretax income? 3. Assume sales for 2018 decrease by 5%. Prepare a contribution margin income statement for 2018. 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 2017. (Round your answer to 1 decimal place.) Degree of operating leverage Required 1 Required 2> Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (8,600 units at $240 each) Variable costs (8,600 units at $180 each) Contribution margin Fixed costs Pretax income $2,964,000 1,548,000 $516,000 387,000 $129,000 1. Compute the company's degree of operating leverage for 2017 2. If sales decrease by 5% in 2018, what will be the company's pretax income? 3. Assume sales for 2018 decrease by 5%. Prepare a contribution margin income statement for 2018. Complete this question by entering your answers in the tabs below. Required 1 Required 2Required 3 . If sales, decrease by.5% n. 2018, what wil be the company's. Preta Pretax income income? K Required 1 Required 3 > Hudson Co. reports the contribution margin income statement for 2017. HUDSON CO Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (8,600 units at $240 each) Variable costs (8,600 units at $180 each) Contribution margin Fixed costs Pretax income $2,064,000 1,548,000 $ 516,000 387,000 $ 129,000 1. Compute the company's degree of operating leverage for 2017. 2. If sales decrease by 5% in 2018, what will be the company's pretax income? 3. Assume sales for 2018 decrease by 5%. Prepare a contribution margin income statement for 2018 Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 ssume sales for 2018 decrease by 5%. Prepare a contribution margin income statement for 2018 HUDSON CO Forecasted Contribution Margin Income Statement For Year Ended December 31, 2018 Sales Variable costs Contribution margin Fixed costs Income (pretax) KRequired 2 Required 3
