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Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (8,200 units

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Hudson Co. reports the contribution margin income statement for 2017 HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2017 Sales (8,200 units at $240 each) Variable costs (8,200 units at $180 each) Contribution margin Fixed costs Pretax income $1,968,000 1,476,000 $ 492,000 369,000 $ 123,000 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 Compute the company's degree of operating leverage for 2017. (Round your answer to 1 decimal place.) Degree of operating leverage Road 1 Required 2 > 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 If sales decrease by 5% in 2018, what will be the , mpany's pretax income? Pretax income

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