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Hudson Company reports the following contribution margin income statement. Complete this question by entering your answers in the tabs below. Compute the company's degree of

Hudson Company reports the following contribution margin income statement. Complete this question by entering your answers in the tabs below.
Compute the company's degree of operating leverage.
Degree of operating leverage Complete this question by entering your answers in the tabs below.
If sales decrease by 5% in the next year, what will be the company's income? Prepare a contribution margin income statement for the next year assuming sales decrease
HUDSONCOMPANY?ContributionMarginIncomeStatement?ForYearEndedDecember31?Sales?Variablecosts?Contributionmargin?Fixedcosts?Income?
HUDSON COMPANY
Contribution Margin Income Statement
For Year Ended December 31
Sales (9,600 units at $225 each) $ 2,160,000
Variable costs (9,600 units at $180 each)1,728,000
Contribution margin $ 432,000
Fixed costs 324,000
Income $ 108,000
Compute the companys degree of operating leverage.
If sales decrease by 5% in the next year, what will be the companys income?
Prepare a contribution margin income statement for the next year assuming sales decrease by 5%.
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