HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (9,000 units at $280 each) Variable costs (9,000 units at $210 each) Contribution margin Fixed costs Income $ 2,520,000 1,890,000 $ 630,000 420,000 $ 210,000 1. Compute the company's degree of operating leverage. 2. If sales decrease by 6% in the next year, what will be the company's income? 3. Prepare a contribution margin income statement for the next year assuming sales decrease by 6%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If sales decrease by 6% in the next year, what will be the company's income? Income