Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (11,000 units at $300 each) Variable costs (11,000 units at $240 each) Contribution margin Fixed costs Income 1. Compute the company's degree of operating leverage. $ 3,300,000 2,640,000 $ 660,000 360,000 $ 300,000 2. If sales decrease by 5% 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 5%. 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. (Round your answer to 1 decimal place.) Degree of operating leverage < Required 1 Required 2 > If sales decrease by 5% in the next year, what will be the company's income? Income < Required 1 Required 3 > Required 1 Required 2 Required 3 Prepare a contribution margin income statement for the next year assuming sales decrease by 5%. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales Variable costs Contribution margin Fixed costs Income $ 3,720,000 2,976,000 744,000 360,000 384,000 < Required 2 Required 3 >