Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,000 units at $300 each) Variable costs (9,000 units at $240 each) Contribution margin Fixed costs Pretax income $2,700,000 2,160,000 $ 540,000 420,000 $ 120,000 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 Red Required 2 > Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,000 units at $300 each) Variable costs (9,000 units at $240 each) Contribution margin Fixed costs $ 2,700,000 2,160,000 $ 540,000 420,000 $ 120,000 Pretax income 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 If sales decrease by 4% in 2020, what will be the company's pretax income? Pretax income HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (9,000 units at $300 each) Variable costs (9,000 units at $240 each) Contribution margin Fixed costs Pretax income $2,700,000 2,160,000 $ 540,000 420,000 $ 120,000 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 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 0 Variable costs Contribution margin Fixed costs Income (pretax) 0