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Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (12,000 units at

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Hudson Company reports the following contribution margin income statement. HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 Sales (12,000 units at $225 each) Variable costs (12,000 units at $180 each) Contribution margin Fixed costs Income 1. Compute the company's degree of operating leverage. $ 2,700,000 2,160,000 $540,000 360,000 $ 180,000 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. Required 1 Required 2 Required 3 Compute the company's degree of operating leverage. (Round your answer to 1 decimal place.) Degree of operating loverage) Required Required 2 >

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