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Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (12,000 units
Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (12,000 units at $225 each) Variable costs (12,000 units at $180 each) Contribution margin Fixed costs Pretax income $2,700,000 2,160,000 $ 540,000 360,000 $ 180,000 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. HUDSON CO. Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax) 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? Prelax income 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 decir Degree of operating leverage Required Required 2 >
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