Hudson Company reports the following contribution margin income statement. 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.

Complete this question by entering your answ Compute the company's degree of operating leverag 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 by 5%