Hudson Company reports the following contribution margin income statement. 1. Compute the company's degree of operating leverage. 2. If sales decrease by 4% 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 4%. Complete this question by entering your answers in the tabs below. Compute the company's degree of operating leverage. (Round your answer to 1 decimal place.)