Hudson Company reports the following contribution margin income statement.

Compute the company's degree of operating leverage.

$2$ 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 by $5\%.$

Complete this question by entering your answers in the tabs below.

Compute the company's degree of operating leverage.

Degree of operating leverage

If sales decrease by $5\%$ in the next year, what will be the company's income?

Income

Required $2$

Required $3$

Prepare a contribution margin income statement for the next year assuming sales decrease by $5\%.$